Chinese Lenders Cut Mortgage Shares of Total Loans: Journal

Most Chinese lenders have reduced the shares of residential mortgages in their loans in the first half, compared with the end of last year, although the Postal Savings Bank and the China Construction Bank still exceeded the 32.5% limit imposed by the banking regulator, the China Securities Journal reported citing the 1H income statements disclosed by the banks. Four of the six largest state-owned banks reported gains in bad debt ratios in their real estate portfolios as some developers failed to reach their target sales, the newspaper said. As the authorities tighten controls over the property sector, the banks are expected to be cautious and choose to lend to those industries favoured by the government, such as new manufacturing, said the journal.