China / Society

China's central bank: Household loans up by 1.8 trillion yuan from last year

By Wang Yanfei ( Updated: 2016-10-18 17:23

China's issued incremental housing loans account for 35.7 percent of the total incremental loans in the first three quarters, which still accounts for a high proportion, a central bank official said on Tuesday.

Household loans issued by Chinese banks increased by 3.63 trillion yuan in the first three quarters, up by 1.8 trillion yuan compared to the same period last year, official data shows.

"The high proportion of increased household lending has to do with booming house markets, asset allocation preferences of residents and financial institutions," said Ruan Jianhong, head of the statistics and analysis department at the People's Bank of China, on Tuesday.

China's booming housing market has witnessed spiked trading volumes especially in the first and second tier cities, according to Ruan.

"But the percentage of housing lending would be dragged down a little, considering local governments' replacement of existing debts and progress made in dealing with bad assets," said Ruan.

Ruan added that seeing the impact brought by new property cooling measures implemented at the beginning of this month takes time.

A total of 21 Chinese cities have introduced policies to prevent bubble risks and to stabilize the market since the beginning of October.

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