Multiple banks in China have been required to tighten real estate development loans from Thursday August 29, according to a report by Tencent News earlier on the same day.

Outstanding loans that banks issued to real estate developers to finance construction of properties and their supportive facilities, grew 18.9% from a year ago to 10.85 trillion yuan by the end of the first quarter of 2019, 3.7 percentage points slower than the growth by the end of 2018, showed data from the People’s Bank of China (PBOC).

By the end of the second quarter of this year, outstanding real estate development loans stood at 11.04 trillion yuan, up 14.6% year on year.

Real estate development loans are expected to be tightened to levels seen at the end of March, which means that outstanding loans will fall below 10.85 trillion yuan, the report cited comments from a source who work in the banking sector.