Property loan growth slows in China in 2018

Photo taken on Nov. 18, 2015 shows residential buildings in Zhengzhou, capital of central China's Henan Province. [Photo / Xinhua]

China's outstanding yuan-denominated loans to the property sector grew at a slower pace in 2018 as government curbs continued, data from the central bank showed.

By the end of last year, outstanding loans from financial institutions to the sector reached 38.7 trillion yuan (about 5.7 trillion U.S. dollars), up 20 percent year on year, according to a report from the People's Bank of China.

The growth was down 0.9 percentage points from a year earlier, the report showed.

Of the total, outstanding loans to individual purchasers rose 17.8 percent to 25.75 trillion yuan, down 4.4 percentage points from a year earlier.

The government continued with rigorous regulations on the property sector last year to prevent asset bubbles and defuse economic risks.

Meanwhile, inclusive and green financing maintained rapid growth as banks were encouraged to lend more support to the real economy.

Outstanding loans in the inclusive financing area climbed 13.8 percent year on year to 13.39 trillion yuan by the end of 2018, up 5.3 percentage points from a year earlier.

Inclusive financing covers credit support for small business owners, agricultural development, impoverished groups and students.

Outstanding green loans in yuan and foreign currencies reached 8.23 trillion yuan, up 16 percent year on year, 6.1 percentage points above the overall loan growth for non-financial enterprises and other organizations.