Chinese property loans continue to expand at a robust rate despite easing growth since the start of 2017.
The latest credit data from the Chinese central bank indicates that the balance of RMB property lending reached 29.72 trillion yuan at the end of June for a YoY increase of 24.2%, and a slowdown in growth of 2.8 percentage points compared to the end of 2016.
The balance of real estate development loans rose 9.8% YoY to reach 7.76 trillion yuan in June, for an acceleration of 1.6 percentage points compared to the end of last year, while the personal home loan balance lifted 30.8% YoY to reach 20.1 trillion yuan, for a decline in growth of 5.9 percentage points.
According to Ruan Jianhong, head of statistics for the People’s Bank of China the slowdown in real estate lending growth momentum as well as declines in both the personal home loan coverage ratio and terms will be of benefit to curbing any property bubbles, and “expediting the stable and healthy development of the market.”
