The first half of 2008 saw a slowdown in the growth rate of loans to real estate developers and buyers.
The People’s Bank of China (PBOC) reports Chinese bankers held loans totaling RMB5.2 trillion (about $580 billion) to real estate developers and housing buyers by the end of June, up 22.5% year-on-year.
The central bank said the growth rate was two percentage points lower than the same period last year, representing a decline for seven consecutive months since last December.
China’s real estate investment grew fast in the first half, but the housing price decline in some cities has strengthened a wait-and-see attitude among housing buyers, which has held back housing sales. The country’s real estate developers sold out about 260 million square meters of houses in the first six months, and the sales value totaled RMB1 trillion, representing a decrease of 7.2% and 3.0% over the same period last year, respectively.
The PBOC had been warning banks to control their exposure to real estate. Obviously the banks are responding.
Source: China Stakes.com