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MNI BRIEF: China Real Estate Loan Growth Still Slowing

Loans to China's real estate sector grew by CNY5.17 trillion in 2020, 7.9 percentage points lower than that in the previous year, according to a report released by the People's Banks of China on its website on Friday. Lending to the sector accounted for 26.1% of 2020's overall new loans

The total outstanding balance of real estate lending totaled CNY49.58 trillion by the end of 2020, a rise of 11.7% y/y. However, the growth rate declined 3.1 percentage points compared end-2019 and has now decelerated for 29 consecutive months.

The balance of real estate development loans was CNY11.91 trillion, higher by 6.1%, while individual mortgage lending totalled CNY34.44 trillion, rising 14.6%. Those growth rates were 4 and 2.1 percentage points lower, respectively, than at end-2019.

Bank lending, particulalrly in the real estate sector, and the outlook for NPLs were discussed in an MNI exclusive published Friday.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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