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China's central bank says the growth of property loans slowed at the end of June. Analysts say that's due to the central government's curbing policy, and last year's soaring property prices.
Finally, signs of a slowdown. China's central bank says more than 1 trillion yuan, or around one third of new loans in the first half of this year, extended to the property market. That's more than 18 percent lower than the end of last year, and nearly 9 percent lower than at the end of March this year. Most notably, in the second quarter this year, new loans for property development dropped by more than 60 percent compared to the first quarter.
Lian Ping, Chief Economist of Bank of Communications said "We think that's partly due to the property market curbing policy. At the same time, last year's soaring prices also put pressure on the market."
The central bank's data also shows the same slowing trend for medium to long-term loans, which may indicate a slowing growth in investment. But analysts say the construction of affordable housing will boost growth momentum for investment in the second half of this year.
Lian Ping, Chief Economist of Bank of Communications said "If the construction of affordable housing speeds up in the second half of this year, that will boost investment."
He also says the slowing growth trend of loans may be due to the government's curbing policies in several areas.