PBOC: no new property tightening policies

More from the Central Bank, but this time on what it intends to do on the policy front with respect to the property market. Speaking on Monday, deputy governor of the PBOC, Su Ning, said he's satisfied with what has already been implemented and that it takes time for policies to show their full effects.

Talking about the macro-control and adjustment to the real estate market, Su Ning maintained that the central bank only aims to consolidate existing policies, and will not be stepping up measures in the near future.

Su Ning, Deputy Governor, The People’s Bank of China, said, "We will put a curb on investment-oriented and speculative purchases, because this tends to push up housing prices. We can already see transaction volumes dropping since the central bank tightened mortgage rates for loans to buy second homes. But prices have yet to fall. Polices need time to take effect, so there's no urgent need to roll out anything new."

Su Ning added that some commercial banks are already pushing up mortgage rates and he hopes these measures will help curb speculation. He added that skyrocketing property prices may increase lenders' credit risks, and commercial banks are allowed to adjust their own rates according to the benchmark. However, he stressed that the central bank will not interfere as long as commercial lenders act rationally.