Home / Business / Industries

Banks' property loans spike in H1 of 2013

By WANG YING in Shanghai | | Updated: 2013-07-22 17:23

China's property loans increased 1.3 trillion yuan ($211.6 billion) in the first half of this year, 732.6 billion yuan more than the same period last year, China's central bank said.

A People's Bank of China report on financial institutions' loans said that as of the end of June, major financial institutions, small rural financial entities and foreign-funded commercial banks provided a combined 13.56 trillion yuan in loans to property developers and homebuyers — 18.1 percent higher than a year earlier.

All loans amounted to 68.08 trillion yuan by end of June, up 14.2 percent year-on-year, and new loans in the first six months reached 5.08 trillion yuan, 27.1 percent of which went to the real estate sector.

Loans for government-subsidized housing soared 37.5 percent year-on-year to 658 billion yuan in the first half, and new loans for public housing projects was 85 billion yuan, accounting for 35.5 percent of total new yuan-denominated loans in the property sector.

More loans for land and property development reinforces evidence that a recovery is taking place in the real estate market.

Data from the National Bureau of Statistics released July 18 showed that of the 70 major cities the bureau tracks on a monthly basis, 63 cities' new-home prices increased in June, five other cities saw declines, and the other two stayed unchanged.

Only Wenzhou of Zhejiang province experienced a drop in new-home price in June from the same period last year, while the 69 other cities all reported hikes.

Zhu Haibin, JPMorgan Chase & Co's chief China economist, said he expects the property market to cool down a bit in the second half because the total social financing amount will decline from more than 10 trillion yuan in the first half to less than 8 trillion yuan in the second half.

There will be no major policy change for the property market, Zhu said.

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349