China's property loans rise to 2-year high on policy support

China's outstanding property loans rose to a two-year high in June, central bank data showed on Tuesday, following a series of policy measures aimed at stabilising the sector.

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China's outstanding property loans stood at 53.33 trillion yuan ($7.43 trillion) at the end of June, up 0.48 from the same time the previous year, the central bank said in a statement.

Growth accelerated from 0.048 in March, reaching the highest level since June 2023, according to central bank data.

But growth remains modest, dwarfed by the double-digit increases seen before 2021.

Outstanding individual mortgage loans came in at 37.74 trillion yuan, down 0.18 year-on-year, while outstanding property development loans rose 0.38 on the year to 13.81 trillion yuan, the central bank said.

Beijing has rolled out multiple rounds of policy measures in recent years to support the property sector, including allowing debt-laden developers to sell housing inventories and undeveloped land to local governments.

Despite the support, the property downturn remained a drag on the economy despite policy support, with investment in the sector falling sharply in the first six months, while new home prices in June tumbled at the fastest monthly pace in eight months.

China has the conditions to keep the yuan stable, the country's foreign exchange regulator said on Tuesday, even as trade relations with Washington remain uncertain and deflationary pressures continue to weigh on the domestic economy.