Property loans by Chinese banks surge 130% in H1

Stands at US$212 billion from US$92 billion year-on-year.

The People's Bank of China, the central bank also reported that major financial institutions, small rural financial entities and foreign-funded commercial banks together provided loans of US$2.2 trillion to property developers and homebuyers, up 18% year-on-year.

All loans amounted to US$22 trillion in June, up 14% year-on-year. New loans in the first six months reached US$872 billion, a 27% improvement.

Loans for government-subsidized housing in the first half jumped to US$107 billion, or an increase of 38% year-on-year. New loans for public housing projects came to US$14 billion, or 36% of total new RMB-denominated loans in the property sector.

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.

Analysts expect the property market to cool down slightly in the second half as the total social financing amount will drop from over US$1.6 trillion in the first half to less than US$1.3 trillion in the second half.