In October, the annual growth rate of the Bank of China's housing loan balance fell for 7 consecutive months.

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[Reporter Chen Meiying/Taipei Report] The Central Bank announced today that the balance of housing loans of the Bank of China in October was 9.2694 trillion yuan, and the balance of construction loans was 3.578 trillion yuan, both of which hit record highs. However, the annual growth rate of housing loan balances was 7.6%. It has declined for seven consecutive months and hit the lowest level since September 2020. The housing market has cooled significantly.

According to the statistics of the central bank, the balance of housing loans in October continued to increase by 26.7 billion yuan from the previous month to 9,269.4 billion yuan, but the annual growth rate fell to 7.6%, which was significantly slower than the double-digit growth rate in the past.

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According to the central bank's analysis, the main reasons are related to the central bank's interest rate hike, high uncertainty in the economic outlook and financial market shocks.

The director of China National Bank pointed out that the number of buildings traded and transferred in Liudu in the first October of this year was 205,000, a year-on-year decrease of 4.4%. There has been a drop in temperature.

Under the four major unfavorable factors of inflation, interest rate hike, stock market decline and the government's elimination of real estate speculation, the transaction volume of the housing market will continue to decline in the fourth quarter and next year, which will also affect the growth rate of the Bank of China's housing loan balance.

In addition, the balance of construction mortgage loans continued to rise to 3.578 billion yuan in October, and the annual growth rate rebounded to 12.18%.

Officials said that as the haze of the epidemic gradually dissipated, builders are sprinting for the peak season of housing market sales at the end of the year. In addition, the central bank’s fourth wave of housing market control measures last year required banks to sign a contract with builders and start construction within a certain period of time. Interest rate hikes or loan withdrawals have led to an increase in the annual growth rate of construction loan financing balances for two consecutive months.

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