China loosens mortgage rules - more lending encouraged
Chinese regulators told some major banks in September to accelerate approval of mortgages in Q4.
- Lenders permitted to apply to sell securities backed by residential mortgages to free up loan quotas
- Doing this had been banned earlier this year
- also said to increase MBS issuance to avoid loan cap limits
A response to Evergrande and associated worries in the property sector.
China authorities are pulling out the stops to support the property sector, or at least cushion the falls.