New loans in China rise 12.9% in first half

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China's banks issued a combined 7.97 trillion yuan (1.18 trillion US dollars) in new loans in the first six months of 2017, the central bank said on Friday.

That represented an increase of 436.2 billion yuan (64.45 billion US dollars) from a year ago, data from the People's Bank of China show.

By the end of last month, total outstanding yuan-denominated loans stood at 114.57 trillion yuan (16.93 trillion US dollars), up 12.9 percent year-on-year.

New loans in China rise 12.9% in first half /CFP Photo

Lian Ping, economist with the Bank of Communications, said credit demand would weaken in the second half this year due to lower financing needs from the infrastructure sector and dampened mortgage demand following continued government curbs in real estate.

Loans to China's property sector expand at slower pace

The central bank also said that the country issued 3.04 trillion yuan (450 billion US dollars) in new property loans in the first half of this year.

But the sector is expanding at a slower pace due to strict purchase rules and the ongoing financial deleveraging.

Outstanding property loans amounted to 29.72 trillion yuan (4.5 trillion US dollars) in H1, up 24.2 percent from a year ago, 1.9 percent slower compared to the growth rate during Q1.

Loans to China's property sector expand at slower pace /CFP Photo

The effects of the government's firm controls are starting to pay off, according to Ren Xingzhou, an analyst at the Development Research Center of the State Council.

Since the end of 2016, dozens of local governments have passed or expanded their restrictions on house purchases and increased the minimum down payment required for a mortgage.

The central bank report also showed robust increases of loans to enterprises, including small businesses, services and rural areas.