The Housing Finance System

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    A. Primary Housing Finance Market

    A.1 Industry Structure and Performance
    VariableEnd of 2022End of 2021End of 2020SourcesVar ID
    Types of originating lenders/market share:A.1.2
    Identify the 3 largest loan originating lenders  China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China
    Various Commercial Banks
    		A.1.3
    Are there (quasi) public mortgage lenders:  Yes
    Brookings Institute
    		A.1.4
    Universal/ commercial banks  Yes
    Brookings Institute
    		A.1.4.1
    Others (e.g. insurance co, pension funds, labor tax funds)  Yes
    Milken Institute
    		A.1.4.5
    Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
    as a % of outstanding loan amount  .3%
    PBOC
    		A.1.6.2
    Average 1997-2007 A.1.7
    A.2 Size of Mortgage Finance Sector
    VariableEnd of 2022End of 2021End of 2020SourcesVar ID
    Total amount of home mortgage loans outstanding at the end of year in millions of USD:  3,357,162.6 USD (millions)
    PBC
    		A.2.1
    Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)  27.37%
    PBOC
    		A.2.1.1
    and as % of all credits outstanding  17.4%
    PBOC
    		A.2.1.2
    Total amount of home mortgages made in calendar year in millions of USD  857,855.22 USD (millions)
    PBOC
    		A.2.3
    and as % of GDP (current)   7.64%
    PBOC
    		A.2.3.1
    A.3 Housing Finance Products
    VariableEnd of 2022End of 2021End of 2020SourcesVar ID
    Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
    Most prevalent type of foreign currency mortgage used:A.3.3
    Most frequent interest rates on fully amortizing:A.3.4
    Typical lender fees associated with mortgage origination: A.3.6
    Typical third party fees associated with mortgage origination:A.3.7
    Loan-to-Value (LTV) on first mortgage: A.3.8
    Maximum LTV  80A.3.8.1
    Typical LTV at origination  80
    Various Commercial Banks
    		A.3.8.2
    Maximum term over which pmt is calculated?   30 years
    Various Commercial Banks
    		A.3.9
    Mortgage pmt-to-income ratio A.3.10
    Maximum pmt-to-income ratio (Individual income)  50%
    IMF, contentID=259722, subContentID=710327, channelID=38488
    		A.3.10.2
    Typical pmt-to-income ratio (HH income)  50%A.3.10.3
    A.4 Lending and Servicing Process
    VariableEnd of 2022End of 2021End of 2020SourcesVar ID
    Does the mortgage industry use standard principles/guidelines for underwriting?  Yes
    Deng (2013)
    		A.4.1
    Which institutions define underwriting rules? A.4.2
    Central Bank/Ministry of Finance  Yes
    Deng (2013)
    		A.4.2.1
    Other  Yes
    Deng (2013)
    		A.4.2.4
    A.5 Credit Risk Assessment
    VariableEnd of 2022End of 2021End of 2020SourcesVar ID
    Do credit bureaus exist?   Yes
    The Credit Reference Center of Bank of China
    		A.5.2
    Is mortgage default insurance available?  Yes
    China Construction Bank
    		A.5.3
    When did it begin operating?  1997
    IMF, contentID=259722, subContentID=710327, channelID=38488
    		A.5.3.1
    Is there public sponsored MI / guarantee?  Yes
    China Construction Bank
    		A.5.5
    B. Funding Sources for Mortgages and the Secondary Mortgage Market
    VariableEnd of 2022End of 2021End of 2020SourcesVar ID
    What are the main funding sources for mortgages?B.1
    Retail funding (deposits/other)  primary
    Various Commercial Banks
    		B.1.1
    Funding through securitization of mortgages  tertiary
    Research
    		B.1.4
    Other   secondary
    Milken Institute
    		B.1.5
    C. Housing Microfinance
    VariableEnd of 2022End of 2021End of 2020SourcesVar ID
    Types of lenders operating in the housing micro-finance (HMF) sector:C.2
    Level of NPLs (>90 days past due) in HMFC.4
    back to top | Country Data:
    Notes: % Change if average wage
    Notes: % Change uses the index in table 6-16
    Notes: % of total loans in 2010.12
    Notes: % of total loans in 2011.12
    Notes: % of total loans in 2012.12
    Notes: % of total loans in 2013.12
    Notes: % of total loans in 2014.12
    Notes: % of total loans in 2015.12
    Notes: % of total loans in 2016.12
    Notes: % of total loans in 2017.12
    Notes: China allows for a monthly deduction of taxable income based on payments made toward a housing fund.
    Notes: China allows for a monthly deduction of taxable income based on payments made toward a housing fund.
    Notes: China allows for a monthly deduction of taxable income based on payments made toward a housing fund.
    Notes: China allows for a monthly deduction of taxable income based on payments made toward a housing fund.
    Notes: China allows for a monthly deduction of taxable income based on payments made toward a housing fund.
    Notes: China allows for a monthly deduction of taxable income based on payments made toward a housing fund.
    Notes: Employees can borrow directly from their Housing Provident Fund often on more favorable terms than mortgage loans from commercial banks.
    Notes: Employees can apply for loans directly from Housing Provident Funds (consists of employee savings along with employer matched contributions dedicated to housing), which can offer mortgages at lower rates and better terms than compared to commercial banks.
    Notes: Employees can apply for loans directly from Housing Provident Funds (consists of employee savings along with employer matched contributions dedicated to housing), which can offer mortgages at lower rates and better terms than compared to commercial banks.
    Notes: Employees can apply for loans directly from Housing Provident Funds (consists of employee savings along with employer matched contributions dedicated to housing), which can offer mortgages at lower rates and better terms than compared to commercial banks.
    Notes: Employees can apply for loans directly from Housing Provident Funds (consists of employee savings along with employer matched contributions dedicated to housing), which can offer mortgages at lower rates and better terms than compared to commercial banks.
    Notes: Employees can apply for loans directly from Housing Provident Funds (consists of employee savings along with employer matched contributions dedicated to housing), which can offer mortgages at lower rates and better terms than compared to commercial banks.
    Notes: Employees can apply for loans directly from Housing Provident Funds (consists of employee savings along with employer matched contributions dedicated to housing), which can offer mortgages at lower rates and better terms than compared to commercial banks.
    Notes: Employees can apply for loans directly from Housing Provident Funds (consists of employee savings along with employer matched contributions dedicated to housing), which can offer mortgages at lower rates and better terms than compared to commercial banks.
    Notes: Employees can apply for loans directly from Housing Provident Funds (consists of employee savings along with employer matched contributions dedicated to housing), which can offer mortgages at lower rates and better terms than compared to commercial banks.
    Notes: Employees can borrow directly from their Housing Provident Fund often on more favorable terms than mortgage loans from commercial banks.
    Notes: Employees can borrow directly from their Housing Provident Fund often on more favorable terms than mortgage loans from commercial banks.
    Notes: Employees can borrow directly from their Housing Provident Fund often on more favorable terms than mortgage loans from commercial banks.
    Notes: Employees can borrow directly from their Housing Provident Fund often on more favorable terms than mortgage loans from commercial banks.
    Notes: Employees can borrow directly from their Housing Provident Fund often on more favorable terms than mortgage loans from commercial banks.
    Notes: Employees can borrow directly from their Housing Provident Fund often on more favorable terms than mortgage loans from commercial banks.
    Notes: Employees can borrow directly from their Housing Provident Fund often on more favorable terms than mortgage loans from commercial banks.
    Notes: Employees can borrow directly from their Housing Provident Fund often on more favorable terms than mortgage loans from commercial banks.
    Notes: HPF offers lower interest rate mortgage loans to those that contribute to the fund. The government also alters the mortgage interest rate through the PBOC based on the current economic climate, which can act as an interest rate subsidy to households.
    Notes: HPF offers lower interest rate mortgage loans to those that contribute to the fund. The government also alters the mortgage interest rate through the PBOC based on the current economic climate, which can act as an interest rate subsidy to households.
    Notes: HPF offers lower interest rate mortgage loans to those that contribute to the fund. The government also alters the mortgage interest rate through the PBOC based on the current economic climate, which can act as an interest rate subsidy to households.
    Notes: HPF offers lower interest rate mortgage loans to those that contribute to the fund. The government also alters the mortgage interest rate through the PBOC based on the current economic climate, which can act as an interest rate subsidy to households.
    Notes: HPF offers lower interest rate mortgage loans to those that contribute to the fund. The government also alters the mortgage interest rate through the PBOC based on the current economic climate, which can act as an interest rate subsidy to households.
    Notes: HPF offers lower interest rate mortgage loans to those that contribute to the fund. The government also alters the mortgage interest rate through the PBOC based on the current economic climate, which can act as an interest rate subsidy to households.
    Notes: HPF offers lower interest rate mortgage loans to those that contribute to the fund. The government also alters the mortgage interest rate through the PBOC based on the current economic climate, which can act as an interest rate subsidy to households.
    Notes: HPF offers lower interest rate mortgage loans to those that contribute to the fund. The government also alters the mortgage interest rate through the PBOC based on the current economic climate, which can act as an interest rate subsidy to households.
    Notes: HPF offers lower interest rate mortgage loans to those that contribute to the fund. The government also alters the mortgage interest rate through the PBOC based on the current economic climate, which can act as an interest rate subsidy to households.
    Notes: In 2018, the government created an online platform that streamlined transaction, tax, and registration department processes to reduce time needed to transfer title
    Notes: January 2010 - December 2012 LTV was set at 70% for homes under 90 sq. meters.
    Notes: January 2010 - December 2012 LTV was set at 70% for homes under 90 sq. meters.
    Notes: LTV limits are altered by the government of China much more frequently than is typical in other countries. Figures represented here are representative of a general trend of LTV limits and may not capture quarterly or annual changes in LTV limits by the PBC.
    Notes: LTV limits are altered by the government of China much more frequently than is typical in other countries. Figures represented here are representative of a general trend of LTV limits and may not capture quarterly or annual changes in LTV limits by the PBC.
    Notes: LTV limits are altered by the government of China much more frequently than is typical in other countries. Figures represented here are representative of a general trend of LTV limits and may not capture quarterly or annual changes in LTV limits by the PBC.
    Notes: maximum
    Notes: Middle Income Households (Third Quintile)
    Notes: Middle Income Households (Third Quintile)
    Notes: Middle Income Households (Third Quintile)
    Notes: Middle Income Households (Third Quintile)
    Notes: Middle Income Households (Third Quintile)
    Notes: Middle Income Households (Third Quintile)
    Notes: Middle Income Households (Third Quintile)
    Notes: Middle Income Households (Third Quintile)
    Notes: Middle Income Households (Third Quintile)
    Notes: Mortgage laws were "tentative, isolated provisions existing in various parts of different statutes" before the introduction of the New Property Law in 2007--China's first truly consolidated law with a portion dedicated to mortgages.
    Notes: Mortgage laws were "tentative, isolated provisions existing in various parts of different statutes" before the introduction of the New Property Law in 2007--China's first truly consolidated law with a portion dedicated to mortgages.
    Notes: Mortgage laws were "tentative, isolated provisions existing in various parts of different statutes" before the introduction of the New Property Law in 2007--China's first truly consolidated law with a portion dedicated to mortgages.
    Notes: Mortgage laws were "tentative, isolated provisions existing in various parts of different statutes" before the introduction of the New Property Law in 2007--China's first truly consolidated law with a portion dedicated to mortgages.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The "Big Four" banks in China are all state-owned, and they are the largest mortgage lenders in the nation.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The China Banking Regulatory Commission (CBRC) works along with the PBOC to supervise and set regulations on mortgage lending.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The government in the past has altered property tax rates and changed mortgage lending rates in order to stimulate the housing finance market. Employers also offer a variety of interest-free loans and other subsidies in order to allow their employees to purchase homes.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The People's Bank of China alters the upper and lower interest rate limits of what lenders can offer mortgages at based upon the economic climate at the time.
    Notes: The top four mortgage lenders, all commercial banks, grant over half of mortgages.
    Notes: The top four mortgage lenders, all commercial banks, grant over half of mortgages.
    Notes: The top four mortgage lenders, all commercial banks, grant over half of mortgages.
    Notes: These figures do not include outstanding mortgage loan balances for HPF loans.
    Notes: These figures do not include outstanding mortgage loan balances for HPF loans.
    Notes: These figures do not include outstanding mortgage loan balances for HPF loans.
    Notes: These figures do not include outstanding mortgage loan balances for HPF loans.
    Notes: These figures do not include outstanding mortgage loan balances for HPF loans.
    Notes: These figures do not include outstanding mortgage loan balances for HPF loans.
    Notes: These figures do not include outstanding mortgage loan balances for HPF loans.
    Notes: These figures do not include outstanding mortgage loan balances for HPF loans.
    Notes: While very small compared to other funding sources, commercial banks have continued to issue increasing levels of RMBS in the last few years.
    Notes: While very small compared to other funding sources, commercial banks have continued to issue increasing levels of RMBS in the last few years.
    Notes: While very small compared to other funding sources, commercial banks have continued to issue increasing levels of RMBS in the last few years.
    Notes: While very small compared to other funding sources, commercial banks have continued to issue increasing levels of RMBS in the last few years. As of 2015, RMB26 billion outstanding.