BEIJING, Dec. 2 (Xinhuanet) -- The Ministry of Land and Resources (MLR) and the China Banking Regulatory Commission (CBRC) have built a land information inquiry system as to eliminate financial risks of land mortgages, an official from the MLR announced Tuesday.
The system will be launched in 105 major cities throughout the country, including Beijing, Shanghai, Tianjin and Shenzhen, from December 1.
The system will be mainly used for the banks to inquire on the information of corresponding land once they approve a mortgage. The information in the system includes land registration, payment of land-transferring fees, the situation of land reserves, and property developers' development information about the land -including value and dates.
A banking analyst said the policy signifies that when approving mortgages for the next year, the banks will have the information system at disposal. For already idle or blacklisted lands, the banks will not approve the mortgages.
According to an employee from a State-owned bank in Shanghai, it is common place for developers to raise money via mortgages. And before them, the banks usually check the information of the land to avoid risks, while the system previously used has limited capabilities, and does not reach outside of Shanghai.
Song Ancheng, lawyer from YingKe Law Firm, said that launching the new system will not only effectively prevent cheating, but also help land departments to know about developers' debts.
