The Chinese government has decided to reduce loan risks of the banking by regulating the country's real estate mortgage evaluation. The evaluation should be commissioned, in principle, by commercial banks, unless the banks and the lenders of the loans have written agreement. Real estate evaluation institutions should stick to the principle of independence, objectivity and impartiality, follow the rules on real estate evaluation, and should not compete for business by agreeing to demands for overestimating or underestimating the value of properties for kickbacks. There are about 3,500 real estate evaluation groups with 32,000 licensed evaluators in China, according to the Association of Real Estate Evaluator and Agents.
(Source: People's Daily 2006-01-25) |
