China orders further loan tightening

China’s banking regulator has told commercial banks to be more prudent in their lending and consider borrowers’ actual demand in a move to further tighten liquidity and cool rising asset prices, state media reported. The China Banking Regulatory Commission (CBRC) said in a statement that lenders must "be aware of factors that might influence the repaying capabilities of borrowers through inspection and monitoring." It also said personal loans must not be granted unless their specific use is declared. CBRC chairman Liu Mingkang said in January the government aims to cap full year loans at US$1.1 trillion; new loans issued in the first month of the year stood at US$200 billion.