**MNI: 5 Things We Learned From China Outstanding Loan Data

     **BEIJING (MNI) - The following are the key points from the 2017 China

outstanding loan data, published by the People's Bank of China (PBOC) on Friday.

     - Outstanding loans rose 12.7% y/y to CNY120.1 trillion in 2017, a decline

of 0.4 percentage points over the third quarter, and 0.8 pps lower than 2016.

High loan growth reflects robust credit demands and regulation effects to crack

down on shadow banking.

     - Outstanding loans to the property sector grew 20.9% y/y, compared with

27% in 2016, to CNY32.2 trillion, showing credit demand in the sector remains

buoyant. 

     - Outstanding loans to support indemnificatory apartments building, which

the government encourages, grew rapidly, rising 32.6% in 2017 to CNY3.3

trillion, accounting for almost half of outstanding CNY7 trillion in property

development loans. 

     - Outstanding mortgages increased 22.2% in 2017, slower than the 36.7% in

2016, to CNY21.9 trillion. Despite the government policies to restrict apartment

purchasing, the growth of mortgages remains elevated.

     - Outstanding loans to micro and small enterprises grew 16.4% in 2017,

marginally faster than the 16.0% recorded in 2016, to CNY24.3 trillion. The high

growth reflects government's intentions to support micro and small enterprises,

and also shows the most dynamic enterprises in China are still hungry for

credit. 

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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