Household mortgages account for three quarters of China’s new yuan loans in October, People’s Bank of China data showed on Friday.
China’s banks lent out a net total of 651.3 billion yuan (US$95.8 billion) in new loans in October, with new mid- to long-term household loans reaching 489.1 billion yuan. By contrast, the central bank’s data showed mortgage lending accounted for just 41.3% of overall new loans for the first three quarters of 2016.
Citing people familiar with the matter, Bloomberg reported that the China Banking Regulatory Commission has requested banks and financial institutions in 16 cities where property prices have surged to undertake reviews of their lending.
Among other things, banks are being asked to check if they strictly assessed the authenticity of down-payment funds and evaluated borrowers’ mortgage-repaying abilities, according to Bloomberg’s sources.
The broader M2 money supply in October grew 11.6% from a year earlier, reaching 151.95 trillion yuan.
Corporate bonds issued in October dropped to 243.9 billion yuan.