Statistics

1.4t yuan loaned to infrastructure sector in Jan-Sept

(cntv.cn)
Updated: 2010-10-28 16:58

More than 1.4 trillion yuan ($209 billion)?of loans went to the infrastructure sector in the first nine months of this year, according to the People's Bank of China, the country's central bank.

Preliminary data released by central bank showed medium-to-long term new loans contributed to the infrastructure sector. They totaled more than 1.4 trillion yuan in the first nine months of this year, up 21.2 percent, from the same period last year.

China also saw a drop in medium-to-long term new loans. These totaled 5.22 trillion yuan this year. It's nearly a 340 billion yuan decrease for the period last year.

Related readings:  China's Sept new yuan loans rose to 595.5b yuan  Lenders to closely monitor property loans  China curbs lending to developers to avoid risks  China to invest 7t yuan for urban infrastructure in 2011-15

"This indicates the positive outcome of regulating financing channels from the local government and the real estate market. The newly increased medium-to-long term loans still account for a relatively large portion of overall loans. This is what the banking industry should aim to encourage in the future." said?Lian Ping, chief economist at Bank of Communications.

Property market related loans increased by 1.72 trillion yuan in the first three quarters, which represents a 5.2 percent fall from the end of 2009.

"As lending in the property market is still growing, the regulations on the market have not yet affected property investment. The effects of the regulations should be seen in the next one or two quarters," said Lian Ping.

Data also shows that rural and agriculture loans have increased at a higher rate than loans for other sectors during the first three quarters of 2010.