CCB’s Achievements in Structure Adjustment of Real Estate Corporate Loans

In light of national macro control policies and the trend of the real estate market, China Construction Bank (CCB) made a further adjustment in the structure of real estate corporate loans, bolstered housing loans under the requirement of national measures, and scored substantial achievements in the structure adjustment.

CCB is the first state-owned commercial bank to start real estate financial services among domestic banks. And after over 20 years development, CCB has step by step established its leading position in this line of business. By the end of 2004, the balance of the real estate corporate loan had reached RMB 227.79 billion, accounting for 13.2% of the corporate loan balance, and was the top one among all business lines. In the first quarter, the increase of real estate corporate loans was RMB 12.432 billion, ranked the top position in terms of increase among all domestic banks. In recent years, CCB has taken the structure adjustment as a major business development strategy throughout the whole bank and scored a substantial achievement in the structure adjustment of real estate corporate loans. CCB supported housing loans under the requirement of national measures. By the end of this March, the housing loan balance of the whole bank had reached RMB 114.26 billion, accounting for 71% of the real estate development loan. The products structure, the area structure, and the customers structure of the real estate corporate loan throughout the bank have been improved and the NPL balance and rate has been reduced.

CCB has gained substantial achievements in the structure adjustment of the real estate services. Yet there are still some works to do in terms of structure adjustments. At the end of 2004, the ratio of CCB customers with the real estate loan of less than RMB 5 million reached 30.3%. In recent years, the housing loan has always been accounted for nearly 70% of the development loan. So we can see that there is still a long way to go for the structure adjustment program.

A CCB insider said, the implementation of the national control policy will bring the real estate market into an orderly one. With this trend, the area structure, the products structure and the customers structure of the real estate market will face great changes. CCB will continue to pay much attention to the competent policies, give its great efforts to analyze these policies, and strengthen the research over the real estate market. CCB will attach importance to the development trend of this market and accelerate the development in this business line in the preconditions of risk management. CCB will take further step to change the structure and expand the market share of good customers and buildings on the one hand. And on the other hand, CCB will bolster housing loans and improve the market share and efficiency to increase the ratio of housing loans against development loans. Meanwhile, CCB will offer different services to different clients. And the increase of the real estate development loan this year will mainly go to CCB branches with high level management and good assets and key cities with the sound development of the real estate market.