Set of mortgage guidelines issued by the central bank to help curb overheating prices have yet to produce any effect Banks in Beijing show no signs of tightening lending restrictions for home buyers after new mortgage guidelines were issued by the central bank, according to a leading developer in the city. The People's Bank of China issued a circular last week saying the minimum down payment ratio for urban mortgages should be increased to 30 per cent from 20 per cent. Meanwhile, the minimum mortgage loan rate has been raised 21 basis points to 5.51 per cent, or 90 per cent of the benchmark rate of 6.12 per cent. The measures, aimed at curbing overheated property prices, are not compulsory for all banks, which have some flexibility to tailor loans according to local conditions. 'Banks in Beijing have not made any move so far,' said Jerry He Guang, vice-president of Beijing Capital Land. Moderate property price growth of about 9 per cent in Beijing over the past year had eased concerns of a speculative bubble in the city, Mr He said. By contrast, property speculation is raging in Shanghai, where most banks have raised the down payment ratio to 30 per cent. High-end residential prices rose more than 30 per cent last year. Beijing Capital chairman Liu Xiaoguang, at the company's annual results briefing, said he believed Beijing property prices would see another year of sustained but moderate growth, rising by less than 10 per cent. The company announced 10.9 per cent net profit growth to 283.19 million yuan last year from 255.35 million yuan in 2003. Turnover fell 15.16 per cent to $1.62 billion yuan due to a reduction of interest in its property investment vehicle, Super Shine, to 11 per cent from 26.5 per cent. The firm announced a final dividend of seven fen a share. This year, Beijing Capital plans to sell five projects with a gross floor area of 397,000 square metres, including the newly purchased Shi Li Pu development in Chaoyang and Xi'erqi project in Huadian district, both in Beijing. Property sales volume is forecast to reach about four billion yuan this year while capital expenditures are estimated at three billion yuan. The company pledged to maintain a minimum dividend ratio of 40 per cent. Mr He said the company had no immediate plans to resurrect its aborted three billion yuan Shanghai A-share listing in the near future, adding that the offering would proceed 'at the appropriate time'. The China Securities Regulatory Commission rejected the listing in July last year as the government increased its macroeconomic austerity measures.