Regulations have been tightened for personal consumption loans to prevent lending from being abused in the housing market as a tool for property speculators.

The banking regulatory unit of the People's Bank of China, China's central bank, released a series of circulars in the past week that banks need to examine the use of personal consumption loans above 200,000 yuan ($30,400) with residential properties as mortgages.

Shenzhen banking regulatory authorities have required banks to shorten terms for personal loans from previously up to 20 years to no more than five years, while Guangzhou has stipulated that personal loans shall not exceed one million yuan, and the terms shall be no longer than 10 years.