Lawrence Yee

Lawrence Yee, a China-based partner with the international law firm O'Melveney and Myers, said it is in the self-interest of banks and the Chinese government to place strict controls on lending.

"At the moment, I think banks are pretty careful about ,consumer, loans," said Yee.

He pointed to recent central government rules that scaled back mortgages, allowing only 70 percent of the purchase price to be borrowed, rather than 80 percent.

Lawrence Yee, a China-based partner with the international law firm O'Melveney and Myers, said it is in the self-interest of banks and the Chinese government to place strict controls on lending.

"At the moment, I think banks are pretty careful about (consumer) loans," said Yee.

He pointed to recent central government rules that scaled back mortgages, allowing only 70 percent of the purchase price to be borrowed, rather than 80 percent.