China’s outstanding loans to property market up 40% y-o-y

BEIJING: The total outstanding loans from major financial institutions to China's property market climbed 40.2% as of end of June compared to one year earlier, said the People's Bank of China (PBoC).

Xinhua, quoting the central bank, reported that the figure was lower by 4.1 percentage points compared to the figure at the end of March.

The report said that the new yuan loans extended to the property market in the first half os this year (1H2010) topped 1.38 trillion yuan (RM650.49 billion). It added that new lending to property developers stood at 162.5 billion yuan during 1H2010.

The total outstanding loans to property developers rose 26.1% year-on-year (y-o-y) by the end of June, down five percentange points compared with figures notched at the end of March and down 4.5 percentage points from the end of 2009.

Xinhua reported that the total outstanding loan provided from home purchases grew 49.6% from one year ago as of end of June, up 6.5 percentage points from the end of 2009, but down 3.8 percentage points from the end of March this year.

Meanwhile, new loans for home purchases in 1H2010 totaled 932.3 billion yuan.

China's government has been introducing a series of tightening measures since April to rein in soaring housing prices and curb speculation, including tightening scrutiny of developers' financing, suspension of loans for third-home purchases and requiring higher down-payments for second-home purchases.

The report also stated that housing prices in major Chinese cities rose 11.4% y-o-y in June, lower than the 12.4% in May and 12.8% in April.
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