China Home Loan Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Home Loan Market Analysis
China's Home Loan Market has generated a revenue of USD 680 billion in the current year and is poised to achieve a CAGR of 6% for the forecast period. China has one of the largest home loan markets globally. The market has witnessed rapid expansion due to increased urbanization, rising income levels, and government initiatives to promote homeownership. According to data from the People's Bank of China, the outstanding balance of residential mortgage loans reached trillions of yuan.
In an attempt to stimulate China's flagging housing market, banks in some cities are extending the upper age limit on mortgages to between 80 and 95. Although not a national policy, banks in Beijing, Hangzhou, and other big cities have started offering relay loans to elderly customers, which pass on to their children if they cannot repay. The Chinese government has implemented various policies to support the housing market and facilitate access to home loans. These include measures such as down payment requirements, interest rate regulations, and targeted subsidies to certain groups of homebuyers.
Home loans in China are primarily provided by commercial banks, including large state-owned banks, joint-stock banks, and regional banks. Non-bank financial institutions, such as insurance companies and trust companies, also participate in the home loan market. The Chinese government has implemented policies to regulate down payment requirements for home loans. Different down payment percentages are applied based on factors such as property type, location, and the number of properties owned by the borrower.
The COVID-19 pandemic has had several impacts on the home loan market in China. During the initial phase of the pandemic, there were temporary disruptions in the home loan market due to lockdown measures, restricted movement, and the closure of some financial institutions. These disruptions led to delays in loan processing and approval. The pandemic and associated lockdowns resulted in a decline in housing transactions in certain areas. Reduced housing market activity had a direct impact on the demand for home loans as potential homebuyers delayed their purchase decisions.
China Home Loan Market Trends
Impact of Increasing Household Consumption on Home Loan Market in China
Household consumption expenditure is closely linked to housing demand. As households spend more on consumption, there is an increased desire for better living standards, including homeownership. Higher per capita consumption expenditure may drive demand for housing, thereby stimulating the demand for home loans to finance property purchases. The level of household consumption expenditure can also influence the ability to save for down payments on home purchases. If households have higher consumption expenditures, they may have less disposable income available for savings, which can affect their ability to accumulate the necessary down payment required for a home loan. This can impact the size of home loans individuals can qualify for and the overall demand for mortgage financing. The level of household consumption expenditure can be an indicator of economic confidence. When households have higher spending, it suggests a positive outlook on the economy and job stability. This can positively influence the home loan market as increased economic confidence encourages individuals to make long-term investments, such as purchasing a home and taking on a mortgage.
Impact of Construction cost in Home Loan Market
Construction costs directly impact the overall cost of building homes. When construction costs increase, developers may pass on these costs to homebuyers by raising property prices. Higher home prices can impact the affordability of housing and the loan amounts borrowers need to finance their purchases. It can also affect the loan-to-value ratios, down payment requirements, and borrowing capacity of homebuyers. Construction costs influence the loan amounts sought by homebuyers. As construction costs rise, borrowers may need larger loan amounts to cover the increased costs of purchasing or building a home. This can affect the demand for home loans and the overall loan portfolio of lenders. The impact of construction costs on the home loan market ultimately affects housing affordability. When construction costs increase, it can contribute to higher property prices and mortgage payments, potentially making homeownership less affordable for some individuals and impacting the demand for home loans.
China Home Loan Industry Overview
The competitive landscape of the home loan market in China is highly competitive and continues to evolve as new players enter the market and existing players adapt to changing consumer preferences and regulatory requirements. Factors such as interest rates, loan terms, customer service, digital capabilities, and reputation are key competitive differentiators in this market. The competitive landscape of the home loan market in China is dynamic and consists of various players, including banks, non-banking financial institutions, and online lenders. The following are the major Players in the market: ICBC Co.Ltd., Bank of China, China Construction Bank Corporation, Agricultural Bank of China Limited, and Hua Xia Bank Co., Limited.
China Home Loan Market Leaders
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ICBC Co.Ltd.
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Bank of China
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China Construction Bank Corporation
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Agricultural Bank of China Limited
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Hua Xia Bank Co., Limited
*Disclaimer: Major Players sorted in no particular order
China Home Loan Market News
- March 2023: ICBC implemented a set of policies and subsequent actions to stabilize the economy; promptly issued specific measures to stabilize growth; implemented forward-looking, accurate, and appropriate measures to emphasize its core responsibility and core business; and led and supported real economy growth through financial services.
- October 2022: China Everbright Limited's (Stock code: 165. HK) CEL-Catalyst China-Israel Fund is pleased to announce that its portfolio company SatixFy successfully listed on NYSE American on 28th October 2022 with the symbol 'SATX', via a merger with Endurance Acquisition Corp. (NASDAQ: EDNC), a publicly traded special purpose acquisition company, or SPAC.
Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Real Estate Market Trends
- 4.2.2 Government Policies
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4.3 Market Restraints
- 4.3.1 Interest rates on Home Loans
- 4.3.2 Market Volatility and Uncertainty
- 4.4 Insights on Various Regulatory Trends Shaping the Market
- 4.5 Insights on impact of technology in the Market
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4.6 Industry Attractiveness - Porters' Five Forces Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitutes
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Purpose
- 5.1.1 Home Purchase
- 5.1.2 Refinance
- 5.1.3 Home Improvement
- 5.1.4 Construction
- 5.1.5 Other
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5.2 By End User
- 5.2.1 Employed Individuals
- 5.2.2 Professionals
- 5.2.3 Students
- 5.2.4 Entrepreneur
- 5.2.5 Others (Homemaker, Unemployed, Retired, etc.)
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5.3 By Tenure
- 5.3.1 Less Than 5 years
- 5.3.2 6-10 years
- 5.3.3 11-24 years
- 5.3.4 25-30 years
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concetration Overview
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6.2 Company Profiles
- 6.2.1 ICBC Co.Ltd.
- 6.2.2 Bank of China
- 6.2.3 China Construction Bank Corporation
- 6.2.4 Agricultural Bank of China Limited
- 6.2.5 Hua Xia Bank Co., Limited
- 6.2.6 Industrial Bank Co., Ltd.
- 6.2.7 China Everbright Bank Co., Ltd.
- 6.2.8 Postal Savings Bank Of China (PSBC)
- 6.2.9 China CITIC Bank International Limited
- 6.2.10 China Merchants Bank Co. Ltd.*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
** Subject To AvailablityChina Home Loan Industry Segmentation
A home loan is an amount an individual borrows from a financial institution such as a housing finance company to buy a new or resale home, construct a home, or renovate or extend an existing one. China's Home Loan Market is segmented By Purpose (Home Purchase, Refinance, Home Improvement, Construction, Other (Re-Sale, etc.), By End User (Employed Individuals, Professionals, Students, Entrepreneurs, Other (Homemakers, Unemployed, Retired, etc.)), By Tenure Period (less than 5 years, 6-10 years, 11-24 years, and 25-30 years). The report offers market size and forecasts for the Mom and Pop Stores Market in value (USD Million) for all the above segments.
| By Purpose | Home Purchase |
| Refinance | |
| Home Improvement | |
| Construction | |
| Other | |
| By End User | Employed Individuals |
| Professionals | |
| Students | |
| Entrepreneur | |
| Others (Homemaker, Unemployed, Retired, etc.) | |
| By Tenure | Less Than 5 years |
| 6-10 years | |
| 11-24 years | |
| 25-30 years |
Frequently Asked Questions
What is the current China Home Loan Market size?
The China Home Loan Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in China Home Loan Market ?
ICBC Co.Ltd., Bank of China, China Construction Bank Corporation, Agricultural Bank of China Limited and Hua Xia Bank Co., Limited are the major companies operating in the China Home Loan Market .
What years does this China Home Loan Market cover?
The report covers the China Home Loan Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the China Home Loan Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Home Loan Market Industry Report
Statistics for the 2024 China Home Loan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Home Loan analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
