More lend­ing

China Daily (USA) - - FRONT PAGE - By JIANG XUEQING jiangx­ue­qing@ chi­nadaily.com.cn

China’s com­mer­cial banks will con­tinue to step up is­suance of hous­ing mortgages in the sec­ond half of the year, due to rel­a­tively good as­set qual­ity and high re­turns. >

Chi­nese com­mer­cial banks stepped up the is­suance of hous­ing mortgages and will con­tinue to do so in the sec­ond half of this year, dueto rel­a­tively good as­set qual­ity and the high re­turns of hous­ing mortgages.

Sta­tis­tics from the Peo­ple’s Bank of China, the cen­tral bank, showed that ren­min­bide­nom­i­nated loans in­creased by 463 bil­lion yuan ($69 bil­lion) in July. Most of the new loans were to house­holds, which rose 457.5 bil­lion yuan.

Sev­eral ma­jor com­mer­cial banks posted fast growth in hous­ing mortgages in the first half of 2016, which ac­counted for more than half of the in­crease in their gross loans and ad­vances to cus­tomers, ac­cord­ing to the in­terim re­sults an­nounce­ment for the six months ended June 30.

Spurred by the cen­tral gov­ern­ment’s eas­ing of hous­ing mort­gage poli­cies, China Con­struc­tion Bank Corp, the coun­try’s sec­ond-largest­com­mer­cial lender by as­sets, wit­nessed a 14.7 per­cent growth of res­i­den­tial mort­gage bal­ance from the end of 2015 to 3.18 tril­lion yuan as of June 30. The growth ac­counted for 62.5 per­cent of the bank’s newloans.

Wang Hongzhang, chair­man of the CCB, said on Fri­day: “Our bank will con­tinue to in­crease res­i­den­tial­mort­gages in the sec­ond half of this year and the fol­low­ing year. Next, we will play a more ac­tive role in re­vi­tal­iz­ing real es­tate by step­ping up our con­tri­bu­tion to the con­struc­tion of sup­port­ing fa­cil­i­ties, such as hos­pi­tals, schools and shop­ping malls, to re­duce hous­ing over­ca­pac­ity.”

The bank will also ac­cel­er­ate the de­vel­op­ment of the hous­ing prov­i­dent fund and pro­vide hous­ing mortgages to low-in­come groups at lower in­ter­est rates, he said.

Agri­cul­tural Bank of China Ltd, the coun­try’s third-largest com­mer­cial lender by as­sets, in­creased its hous­ing mort­gage bal­ance by 311.03 bil­lion yuan from the end of last year to 2.24 tril­lion yuan by the end of June.

growth of ren­minbi-de­nom­i­nated loans in July

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