Shanghai records 29% growth in home loans

Banks in Shanghai issued US$775 million in loans for homebuyers in July, a growth of US$174 million, or 29%, from a month earlier, according to sources at the local branch of the central bank, CBN reported (in Chinese). The monthly growth was equal to the combined growth in the entire second quarter of 2006, including US$265 million for new homes and US$510 million for secondhand housing, the sources added. According to the Shanghai branch of the People's Bank of China (PBOC), the banks granted US$517 million in government-subsidized home loans in July, more than five times the monthly average for the first half of this year.