China’s June real estate financing warms up

BEIJING (Xinhua) – China’s real estate financing has seen great expansion last month, while pressure still exists in the second half of this year, analysts said.

In June, financing by Chinese property developers surged 66.2 per cent month on month with the unleashing of pent-up demand, according to CRIC, a property research institution.

The figure was second only to that in January and represented year-on-year growth of 32.6 per cent. Financing pressure eased in the short term because of the lower credit and domestic bond issuance cost, said Chen Mengmeng, a researcher of Shanghai-based real estate consultant firm Tospur.

However, China’s property firms may still face certain financing strain in H2 due to potential tightening in market liquidity and pressure from debt repayment, noted the research institute of online housing platform Beike.