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The most talked about reason for Chinese banks tightening their bank credit is the big threat of inflation. Since the Chinese economy is super heated, the bank is lending out more and more money to help fund these projects. At this rate the threat of inflation becomes more and more inevitable. 

The extremely large population of China is another problem that is mitigating the tight bank credits. How so you may ask? Since the population is so large, there needs to be a good amount of the population in the workforce. The only way to keep people employed is for the banks to lend out large amounts of money for projects that will keep people working. If the banks start tightening credit that may start unrest in the workforce and the chance of a revolution may occur. Due to the size of the population, an unhappy, revolting workforce is a top priority of threats.

The Chinese government is trying to find a nice balance between curbing inflation and keeping the population employed and away from an angry revolution.