The China Banking Regulatory Commission (CBRC) said it will be reviewing the debt level of some of China’s real estate developers over concerns that their borrowings are causing an excessive rise in property prices, Bloomberg reported citing a person familiar with the deal. The CBRC wants to reduce leverage at developers that bought land at inflated prices and at large state-owned companies that have entered the property market. Excessive borrowing by property developers could cause an increase in non-performing loans if property prices collapse. At the end of August, liabilities exceeded 90% of assets at more than 160 developers that have borrowed at least US$7.3 million each from banks. New loans for real-estate development surged 121% from a year earlier in the first half to US$59.16 billion, according to the People’s Bank of China’s latest quarterly report. While the CBRC could not prevent real estate companies from taking loans, it could ask state-owned banks not to loan to the industry. Analysts caution were this to happen demand in the property market would be likely to drop.