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Update Alerts

China bank scraps mortgage discounts in sign of tightening

17 August 2012

Everbright Bank has stopped offering mortgage discounts to first time buyers, according to a bank executive interviewed by the Shanghai Morning Post, in a sign that the credit environment for home buyers is tightening. The statement appears to mark the first public acknowledgement of scrapped mortgage discounts since the central bank reiterated in early June a policy allowing first-home buyers a 30% discount off benchmark mortgage rates. We think Everbright Bank’s move may prefigure similar moves by other banks in the coming weeks.

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