Source: CCTV.com

05-28-2007 11:32

Four foreign banks have established their locally incorporated Chinese banks. And two of them are moving to tap the most active market in the country - the real estate market.

Standard Chartered and Bank of East Asia have officially launched their loan business for China's second-hand home buyers. Consumers are facing higher requirements to obtain loans from foreign banks, such as having to provide bank statements of at least 3 consecutive months, with monthly income of above twice the installment payment. The age of the house should be less than 8 years. But borrowers can also enjoy some unique benefits from foreign banks. They include a 10 to 15 percent discount from the central-bank-set interest rate, and easier access to paying back the loan ahead of time.

Experts say the housing loan business by foreign banks will most likely first tap the high-end market, but a face-to-face war with their Chinese counterparts is within sight.

Editor:Li Yang