China's financial risks in property market under control: central bank

Financial risks in China's property market is controllable as the country has taken a string of prudential regulation policies, a central bank official said Friday.

Banks' bad loan rate related with the property sector is lower than the overall bad loan rate, Pan Gongsheng, deputy governor of the People's Bank of China, told a press conference on the sidelines of the first session of the 13th National People's Congress.

Zhou Xiaochuan (C), governor of the People's Bank of China (PBOC), Yi Gang (R), deputy governor of the PBOC and Pan Gongsheng, deputy governor of the PBOC and head of the State Administration of Foreign Exchange, attend a press conference on financial reform and development on the sidelines of the first session of the 13th National People's Congress in Beijing, capital of China, March 9, 2018. [Photo: Xinhua/Li Xin]

Pan said housing loans have maintained stable growth, outpacing the overall credit growth in 2017 and January, which are enough to meet the housing market's demand. 

He added that the mortgage rate rose a little bit as a market-oriented move, but is still within a low range seen from the long term.

China will urge commercial banks to take a differentiated approach in issuing housing loans to offer more support to home buyers, especially new urban residents, Pan said.

The leverage growth in individual loan is a little fast and some radical property developers pose certain financial risks, which are being watched closely, he said.