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Two of China's biggest cities - Shanghai and Shenzhen - announced tougher regulations on home purchases as their housing markets heat up.'
The Shanghai housing authority said on Thursday that it will guide commercial banks to strictly control the growth pace of individual mortgages, prevent rushed lending, and prevent the funnelling of other loans such as consumer loans and business loans into the real estate market.
The authority said banks should further strengthen management of home mortgages, closely check sources of home buyers' downpayment and their debt to income ratio, said the authority.
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