The growth rate of mortgages provided by domestic banks in Shanghai during the third quarter of this year nearly tripled the growth rate in the first half, the central bank said today.
The "relatively rapid'' new loan growth in Shanghai is likely to post a new high this year as overseas banks are expanding yuan lending while listed Chinese rivals are under pressure to create more value for shareholders, the central bank said.
The value of new individual mortgages topped 19.13 billion yuan (US$2.54 billion) in the third quarter at domestic banks in Shanghai, up 12.3 billion yuan from the first half, the People's Bank of China said yesterday in a statement.
The value of new mortgages in August topped 7.13 billion yuan, the highest monthly figure since 2005.
Mortgages accounted for 91 percent of all individual loans approved in the city during the third quarter, with personal loans accounting for about 70 percent of all yuan-backed loans offered by domestic banks in Shanghai during the period.
September and October are traditionally the two busiest months for the city's real-estate market.
Many home buyers applied for home loan ahead of October amid speculation the central bank would roll out measures to cool the market, which it did in late September.
On September 27, the central bank and the banking watchdog require mortgage holders who apply for another home loan to produce a down payment of at least 40 percent and pay a 10 percent premium on their interest rates. Requirement on third or fourth property buying are even stricter.
City-wide, total new loans, including yuan and foreign currency-backed from domestic and overseas banks, topped 236.4 billion yuan, up 86.95 billion yuan from a year ago.
Overseas banks are increasing yuan-based loans, 63.2 percent of which were issued to the manufacturing, property, leasing and commercial sectors in the third quarter.
(Shanghai Daily October 11, 2007)