BEIJING (Jan 30): Chinese banks extended a total of 1.26 trillion yuan (RM608.27 billion) in new loans to property developers and home buyers in 2011, down 38% from 2010, the central bank said in a statement on its website on Monday.

Beijing has taken an array of measures to rein in the property market — including raising mortgage rates and minimum down payments — to ease public discontent with rocketing home prices, a process that has made it difficult for both home buyers and developers to get bank loans.

Property loans accounted for 17.5% of total new loans issued last year compared with 26.9% in 2010.

Outstanding loans to property developers rose 17% from a year earlier to 2.72 trillion yuan at the end of December compared with a rise of 23% at the end of 2010.

The central bank also said that the mid-to-longer term loans to manufacturing and service industries also grew at a slower pace last year, with new lending to manufacturers falling 35% from a year ago to 517.1 billion yuan.

New short-term loans and bill financing reached 3.11 trillion yuan in 2011, surging from 0.81 trillion yuan in 2010. — Reuters

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