China's property loan growth slows amid tough purchase restrictions

Updated 2018-04-21 15:47:01 Xinhua

Loans to China's real estate sector grew at a slower pace in the first quarter as government purchase restrictions remain in place in major cities, data from the central bank showed.

By the end of last month, financial institutions had lent 34.1 trillion yuan (5.4 trillion U.S. dollars) to the property sector, up 20.3 percent year on year, according to a report from the People's Bank of China (PBOC).

The growth was 0.6 percentage points lower than the rate seen at the end of last year.

Outstanding loans for individual purchases went up 20 percent to 22.86 trillion yuan, retreating 2.2 percentage points from the end of last year.

The data came amid continued government efforts to rein in property speculation, particularly in major cities.

To curb speculation, local governments have passed or expanded restrictions on house purchases and increased minimum downpayments required for mortgages.

In addition, China is working to implement a long-term mechanism for property regulation that ensures supply through multiple sources, provides housing support through multiple channels, and encourages both housing purchases and rentals.

To guide money to the more needy sectors such as small businesses and agriculture, China's central bank in January implemented a targeted reserve requirement ratio (RRR) cut to commercial banks that extend a big enough proportion of their outstanding or new loans to the desired industries.

Commercial banks whose annual outstanding or new loans in inclusive financing account for more than 1.5 percent of the total enjoy a 0.5 percentage point RRR cut from the central bank's benchmark level from next year.

The RRR will be cut further by 1 percentage point if the ratio exceeds 10 percent, according to the central bank.

Inclusive financing covers credit support for small business owners, agricultural development, impoverished groups and students.

The central bank data showed the country's outstanding loans to small and micro businesses totalled 25.1 trillion yuan at the end of March, accounting for 32.7 percent of overall business loans.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58May 27 2018 07:32:50

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16May 27 2018 07:32:50

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18May 27 2018 07:32:50

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords