Wendy Zhang/ Shanghai Daily news

Domestic banks have joined forces with real estate developers to compete in the personal mortgage loan market next year, eastday.com reported today.
The Bank of China announced its intention to tap the individual property credit market next year by signing strategic cooperation agreements with eight key domestic real estate developers, namely China Vanke Co Ltd, Shanghai Zhonghai Real Estate Co Ltd, Shanghai Greenland Group, Shanghai Dahua (Group) Co., Ltd, Guangzhou Fuli Real Estate Co Ltd, Beijing Capital Land Ltd, Beijing Vantone Real Estate Co and Chengdu Zhixin Industrial Group Co. Ltd.
Meanwhile, China Merchants Bank is cooperating with  China Merchant Real Estate on credit loans, mortgage loans, brand promotion and management.
In July this year, the Agricultural Bank of China (ABC) signed an agreement with Shanghai Greenland Group for the extending of 3 billion yuan (US$370 million) of loans to the group. In October and November, the head office of ABC extended 3.6 billion yuan and 2 billion yuan to Dalian Wanda Group Co.,Ltd and Yida Group Corporation Ltd respectively.
Commercial banks have confidence in the quality projects of the top developers and expect to provide both project financing and individual mortgage loan services, said an industry analyst.
In order to attract quality clients over the coming year, most banks in Shanghai have agreed to offer preferential lending rates to those who borrowed money before March 17 this year and who reach year-end without default. The Bank of China's Shanghai branch plans to offer 10 percent discounts on lending rates next year for first-time home-buyers with good credit records.
Local banks have also loosened restrictions on extending mortgage loans to individual home-buyers. China Construction Bank and the Bank of Communications offer different lending rates on the basis of a borrower's credit record, the location of the property and the credit standing of the developer. The nearly two-years of macro-adjustment policies have successfully cooled the Chinese real estate market, with many bubbles squeezed out of the system, the analyst said.