24 Trillion in Housing-Related Loans, Land Sales 80pc of Govt Revenue

China's listed banks have 24 trillion in outstanding housing-related loans. A breakdown of the housing market is below, courtesy of Big Cat Finance （大猫财经）The key takeaway from the article is the slowdown in credit growth. A downturn in real estate does not require credit contraction, it only requires a significant slowdown in credit growth.

Housing-related lending growth slowed from 25 percent in 2016 to 17.6 percent in 2017.

Home price growth was 10.5 percent nationally in 2016, with single city price gains in Beijing, Shanghai, Nanjing, Hefei and Xiamen hitting 25.9, 26.5, 38.8, 46.3 and 41.5 percent, to name a few of the big risers.

In 2017, prices rose 5.6 percent nationally. The largest gain was 13.1 percent in Beihai. Beijing prices were down 0.2 percent, SHanghai rose 0.2 percent. Most increases were single-digit in third- and fourth-tier cities.

The most shocking number in the article: land sales were 80 percent of government revenue.

iFeng: 24万亿贷款流向房地产！但很多人已嗅到危险的味道

01 Housing-related loans are still increasing

According to the listed bank's 2017 annual report, the total of A-share listed banks’ housing-related loans last year was 24.1 trillion yuan, an increase of only 17.62% compared to the end of last year. Compared with the 25% growth rate in 2016, the speed has been increased. The slowdown can slow down the pace, but in absolute terms, it still represents an increase of 3.51 trillion yuan over last year's 20.49 trillion yuan.

Among the 26 listed banks, the number of real estate development loan balances rose by 17 compared to the same period last year, with 9 negative growth. Only Bank of Shanghai and Changshu Bank maintained absolute high growth of over 50% in developing loans, among other banks with rising balances, Most of the increase remained around 10%. Among the declining banks, Zhangjiagang Bank and Chengdu Banking Bank ranked the top two by -25.8% and -24.9%.

Here's a listing of outstanding loan totals and the 2017 growth rate.

In addition to the policy level, the banks themselves are also aware of the risks of real estate. They are strengthening the risk management of the real estate industry . They are cautious about the development of loans in areas with longer digesting cycles in third- and fourth-tier cities and strictly control commercial housing. Development financing.

According to the "2017 fiscal revenues and expenditures" issued by the Ministry of Finance, the budgetary revenue of government funds across the country totaled 6.4 trillion yuan, up 34.8% year-on-year, of which revenue from the transfer of state-owned land use rights was 5.2 trillion yuan. Increased by 40.7%.

Land sales generated 80 percent of government revenues.

The developer's demand for funds, "hungry," in the eyes of the outside world, has reached a point of madness.

The combination of unstable markets and policies has caused banks to adopt different attitudes towards developing loans. How to get the bank's money within a limited space depends on the merits. In addition to banks, the housing enterprises themselves are also broadening their channels of “finding money” and accelerating their own capital turnover.

One firm canceled vacations in the hunt for funds:

For example, in the past two days, Cat brother's [author of the piece] circle of friends has spread a picture. The paper of Huadong Company, which is a member of the Housing Enterprise Taihe Group, is called “Not fighting for youth”. “From May 4th to June 30th On the day, directors and administrators at the level and above cancel all vacations (weekends and holidays), deepen the front line, and accelerate the progress of the actual work of the project.”

Guo Guoqiang, chairman of Country Garden's Board of Directors, instructed that “high turnover is our invincible magic weapon”, “high turnover is the most effective means to resist any risks” and “the project general manager must earnestly study the projects under the jurisdiction of the project, and the daily interest and expenses of the project The benefits will be clear to the chest."

Because we all know that for housing companies, funding is the lifeblood.

Mortgage loans are rising faster than overall housing-related lending.

Compared with development loans, personal mortgage loans are still growing at a high rate.

The total amount of housing mortgage loans of the 26 listed banks in the personal loan business last year was 19.29 trillion yuan, an increase of 3.13 trillion yuan from the 16.16 trillion yuan at the end of 2016, an increase of 19.37%, compared with the 35% increase in 2016. , a lot of decline, but this data is also close to double the development of loans.

Although restrictions on the purchase of loans have become a mainstream in all regulatory policies, the demand for loans for residential and improved housing of residents can still be met.

In terms of personal loans, CCB is undoubtedly the oldest person. The balance of personal mortgage loans at the end of 2017 was ranked first among listed banks; however, the fastest growth rate depends on Jiangsu, and several banks in Jiangsu are on a personal mortgage basis. The growth results were very bright: Jiangyin Bank 270.6%, Wujiang Bank 96%, Jiangsu Bank 42.4%, Nanjing Bank 43.9%, and Zhangjiagang Bank 35.8%.

Maoge or "Cat Brother" found 90 percent of people in their finance platform are focused on real estate.

Cat brother opened the knowledge planet last week - cat brother made money, talk to everyone about earning this serious thing. However, 90% of the membership issues of Knowledge Planet are concentrated in the real estate sector, which makes the cat brother really shocked.

But in retrospect, in fact, this is nothing wrong with the matter, the Chinese people are very serious about the purchase of houses, people at all stages have their own demand for home buyers.