Chinese Real Estate Lending Picks up in Fourth Quarter: PBOC

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The latest data from the Chinese central bank points to an uptick in lending to the real estate sector in the final quarter of 2021, amidst efforts by regulators to contain the fall out from Evergrande Group’s debt debacle.

As of the end of 2021 China’s nationwide real estate loan balance stood at 52.2 trillion yuan, for a year-on-year (YoY) increase of 7.9%, according to data released by the People’s Bank of China (PBOC) on 18 January.

The YoY growth rate at the end of 2021 marked an increase of 0.3 percentage points compared to the end of September, while in the fourth quarter real estate loans increased by 773.4 billion yuan, 202.0 billion yuan ahead of the figure for the same period the year previously and 157.8 billion more than the reading for the the third quarter.

“In the second half of last year, the mood of risk aversion amongst parties to the real estate sector increased as a result of the risk issues of certain real estate enterprises such as Evergrande Group, while financial institutions also saw short-term stress responses,” said Zou Lan (邹澜), head of PBOC’s financial markets department.

“Real estate sales, land purchases and financing have all gradually returned to normal recently, and market expectations are gradually improving.”