Chinese regulators have issued new rules that would limit banks’ access to mortgages and other financial products.
The measures are part of an effort to limit the growth of a housing market in the world’s second-largest economy, which is expected to reach a record $4.4 trillion in 2020.
The rules come as Beijing tries to limit overheated property prices and to shore up the yuan as the world currency struggles to regain its lost competitiveness following a decade of rapid depreciation.
China’s official Xinhua news agency reported Wednesday that the new regulations will allow banks to lend up to 2 percent of a borrower’s home value, the maximum allowed under the country’s “one-size-fits-all” loan rules.
The new rules also limit the amount of capital a bank can lend and require that banks provide more information on borrowers’ credit histories.
The changes, which were not immediately clear, would affect more than 40 million borrowers in China and more than 100 million nationwide.
The changes were published Wednesday in the China Banking Regulatory Commission’s quarterly bulletin.
China has long struggled with an overheated housing market, which has fueled a boom in demand for apartments and condos.
It has been plagued by record-low interest rates, a weak currency and soaring prices that make it more attractive for investors to borrow.
The new regulations come as China grapples with a housing bubble that has sparked a series of defaults by investors and borrowers.
The country’s stock market is down about 25 percent in 2017.