China banks lending more to property sector

Hong Kong

CHINA'S top banks are lending more to homebuyers and developers than at any time since at least the global financial crisis, making them vulnerable to a property market downturn as prices overheat and real-estate firms struggle with a growing debt burden.

China's top five banks had mortgages and loans to the sector of 12.4 trillion yuan (S$2.6 trillion) at end-2015, up 11 per cent over the year, and representing 28 per cent of total loans, a Reuters analysis of their balance sheets shows.