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(Xinhua)
Updated: 2007-08-12 09:05

Banks in Shanghai, an economic engine in East China, issued 5.87 billion yuan (US$775 million) in loans for home buyers in July, a growth of 1.32 billion yuan, or 29 percent, from a month earlier, sources with the local branch of the central bank said on Saturday.

Special coverage: Housing in China Related readings:  Shenzhen property price may drop 30%   Individual housing loans tightened nationwide  China tightens rules on foreign property investors  Central bank to tighten real estate credit  Money flows from stocks to property

The monthly growth was equal to combined growth in entire second quarter, including 2.01 billion yuan for new homes and 3.86 billion yuan for second-hand housing, the sources added.

The sharp rise in credit extension was owed to mounting demand for homes for buyers' own use. The sources said purchases for speculation accounted for a small proportion of the home loans.

According to the Shanghai Branch of the People's Bank of China, the banks granted 3.92 billion yuan in government-subsidized home loans in July, more than five times the monthly average for the first half of this year.