Will Credit Slow or Not

China Daily: Mortgage loans projected to record slower growth: PBOC
After increasing at a fast pace last year, mortgage loans are expected to record slower growth, said Zhou Xiaochuan, governor of the People's Bank of China, the country's central bank, on Friday.

Extension of mortgage loans will help to reduce real estate stocks in lower-tier cities, but it may lead to price rises in major cities, Zhou said, adding that mortgage loans can boost growth of related industries. "We should adopt a relatively balanced policy (on mortgage loans)," he said.

Zhou said mortgage loans may continue to rise at a "relatively fast" pace, although it may moderately slow in the coming years.
iFeng: 周小川:房贷还会以相对比较快速度发展 适当放慢
From this year's government work report, we set the number of M2 growth of about 12%, which is a expected number, not a task indicator. In addition, in the social financing and credit is also roughly in accordance with the speed to control. This is based on the global economy and China's own economic situation to develop.

At the same time, in the implementation process but also according to the economic feedback data, the actual situation of the economy to fine-tune. We believe that the views expressed by the Prime Minister's Government work report are in line with China's actual situation. At the same time, we also heard both representatives support this idea.

As for the structural problems, it is more to say. Last year, the fastest growth within real estate credit was mainly individual mortgages. The growth of individual mortgages, on the one hand to help residents buy a house, at the same time, in some cities, especially three or four lines of urban housing more, help to reduce inventory. But on the other hand, in a second-tier cities and easy to make housing prices rise. Overall, individuals through housing loans after purchase, in fact, funds to the developers. Real estate development is a very long industrial chain, will lead a series of industrial supply, so the loan can not be simply seen as a house, in fact, will be passed to a considerable industrial chain. At the same time, the industry chain also driven with its parallel to some of the industrial chain, such as household appliances. I will not say more.

In general, housing loans in China will be relatively fast pace of development, but really appropriate to balance. With the housing industry policy adjustments, it is expected to slow down.

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