Q2 credit extension keeps increasing in Shanghai

Financial institutions in Shanghai increased their credit extension at a quicker pace in the second quarter of this year, with loans by Chinese lenders for home buyers rallying substantially.

According to the Shanghai headquarters of the People's Bank of China, the central bank, by the end of June, both foreign and domestic financial institutions in the city recorded 1,544.1 billion yuan (193 billion U.S. dollars) in loans outstanding, representing an increment of 111.3 billion yuan (13.9 billion U.S. dollars) over the level at the beginning of the year. The increment was 12.6 billion yuan (1.6 billion U.S. dollars) more than the year-earlier level.

In the second quarter, the institutions made loans of 78.97 billion yuan (9.9 billion U.S. dollars), 2.4 times the level in the first quarter, the PBOC Shanghai headquarters said.

The April-June period also saw a significant recovery in loans by Chinese financial institutions for home buyers. They lent 138 million yuan (17.3 million U.S. dollars) more for such purpose in May and 3.8 billion yuan (475 million U.S. dollars) more in June, the Shanghai headquarters added.

Source: Xinhua