China real estate: ‘recovery of market confidence has accelerated’, sector is on the mend, People’s Bank of China official says
- Bank loans increased by 230 billion yuan (US$33 billion) between September and December last year, PBOC deputy governor says
- Expect widening support and clear market interventions from ‘two sessions’ meetings: Moody’s
Bank loans for real estate development increased by 230 billion yuan (US$33 billion) between September and December last year, an increase of 420 billion yuan year on year, Pan Gongsheng, the People’s Bank of China’s (PBOC) deputy governor, said in Beijing on Friday.
Domestic bond sales by property developers amounted to 120 billion yuan in the fourth quarter of last year, up 22 per cent year on year, he added.
“In January this year, loans for real estate development increased by more than 370 billion yuan, an increase of 220 billion yuan year on year,” Pan said. “Domestic bond sales by property developers were 40 billion yuan, an increase of 23 per cent year on year.”
Since late 2022, Beijing has been taking measures to prop up the world’s largest home market and prevent a collapse. It introduced the “three arrows” liquidity package to save developers and lower mortgage rates to spur sales.
