Tighter norms for projects lending

BEIJING: China will tighten funding rules for new projects to curb investment and worsening pollution in the world’s fourth-biggest economy, according to an official from the nation’s top economic planning agency.

China will “soon” reduce the amount of debt companies can use for projects in industries that have excess capacity, pollute heavily or use too much energy, said Luo Guosan, of the investment department of the National Development and Reform Commission.

The official, interviewed on a government website on Tuesday, didn’t detail the planned capital requirements.

Investment is driving an expansion that’s the fastest of any major economy and forecast by the government to be 11.5% this year.

China wants to prevent economic overheating, reduce the environmental toll from serving as the world’s manufacturing and assembly hub.