Prudent monetary policy to guide housing market, says PBOC

Pan Gongsheng, vice-governor of the People's Bank of China, attends a news conference on the sidelines of the annual session of the National People's Congress in Beijing, March 9, 2018. [Photo by Feng Yongbin/chinadaily.com.cn]

China will maintain prudent monetary policy to promote the development of the housing market, as risks in the sector remain under control, a vice-governor of the central bank said on Friday.

"Reasonable increases in housing loans are necessary to meet the demand for housing purchases. The amount of repayments for housing loans has risen, but it is still within a reasonable range from a long-term perspective," Pan Gongsheng, vice-governor of the People's Bank of China, said at a press conference on the sidelines of the annual session of the National People's Congress.

In 2017, housing loans increased by 4 trillion yuan ($630 billion), up by 22 percent year-on-year, compared to 12.7 percent year-on-year growth of total yuan loans issued during the same period, according to Pan.

He said the government will closely monitor some aggressive steps taken by some property companies and will strive to keep property markets stable.