BEIJING Oct 22 Bank lending to China's real
estate sector rebounded sharply in the third quarter helped by
rising sales and investment, central bank data showed, the
latest sign that house prices may be stabilising.
Chinese banks lent 416.8 billion yuan ($66.65 billion) to
home buyers and property developers between July and September,
up 29 percent from the previous three months.
Property loans accounted for 15.4 percent of total new loans
issued in the first three quarters, up from 12.3 percent in the
first half of this year, the central bank said in a statement on
Outstanding mortgage loans at the end of September rose 12.6
percent from a year ago to 7.8 trillion yuan, while outstanding
loans to property developers rose 12.1 percent to 2.96 trillion
The surge in property loans reinforces other data showing a
mild recovery in home prices and sales, suggesting a government
crackdown on speculation in the real estate market may be less
strident than some think.
Worried that expensive house prices could anger ordinary
Chinese, Beijing has tried to cool China's formerly red-hot
property market by barring buyers from purchasing more than two
That has lowered China's average home prices, which are
falling compared to year-ago levels.
The data also showed loans for public housing construction
totalled 130 billion yuan in the first nine months, accounting
for 60 percent of all loans to developers.
On the other hand, outstanding loans for fixed-asset
investment rose 10.9 percent at the end of September to 20.7
trillion yuan from a year ago, compared with a rise of 10.3
percent at the end of June.
To shore up a slowing economy, Beijing has fast-tracked
infrastructure investment projects and local governments have
also announced a series of investment plans, though providing
few details on how they will be funded.
In marked contrast, mid- to long-term loans for
manufacturers skidded 44 percent in the first three quarters
from a year ago, compared with a fall of 42 percent in the first
six months, the central bank said.