China’s housing sector will land safely in the medium to long term, a senior official at China CITIC Bank Corp Ltd said on Friday.
“Risks associated with the real estate sector still exist in the short term and market confidence has not yet recovered. But in the medium to long term, we are confident that the Chinese real estate sector will land safely. Commercial banks will see growth opportunities for real estate developers who have survived after the divergence in the sector,” said Hu Gang, Vice President and Chief Risk Officer of China CITIC Bank, at a press conference announcing the joint venture’s 2022 interim results. Beijing-based national commercial equity lender.
At the end of June, the balance of the bank’s corporate real estate financing presenting a credit risk, including real and conditional loans, bond investments for own account and non-standardized investments for own account, amounted to 398.7 billion yuan ($58.12 billion), an increase of 988 million yuan since the end of last year. Among its corporate real estate financing with credit risk, the corporate real estate loan balance was 291.61 billion yuan, up 6.81 billion yuan from the end of the year. last.
The bank’s nonperforming loan ratio in real estate was 2.89% at the end of June, down 0.74 percentage points from the end of the previous year.
“We will strengthen the post-loan risk management of corporate real estate loans and pay close attention to potential secondary risks in the upstream and downstream industry chain of certain real estate developers where risks have occurred. In addition, we will continue to adopt differentiated policies for real estate business customers,” Hu said.
China CITIC Bank will also support mergers and acquisitions of key housing projects by quality real estate developers and step up efforts to better meet the strict and improved demand for housing, he said.