Report Description

China Home Loan Market is anticipated to project robust growth during the forecast period on account of increasing marketing strategies, automation of loan process, increasing household construction, and increasing digitalization. The majority of people's primary and most expensive goal is to acquire a home. The construction of a house requires a lot of work on the side of the buyer, and the only way to fit the property into their budget is by taking out a home loan. The acquisition of a new house or apartment, the land on which to build it, or even home improvements, expansions, and repairs can all be funded by a home loan.

 

Since 1978, there has been a significant rural-urban migration in China. The 35 largest metropolitan regions saw a dramatic increase in population. The demand for housing in the major metropolitan regions increased significantly as a result of this significant rural-to-urban migration. Additionally, as employment and disposable money increased, so did the need for homes with larger space.

Increasing Housing Cost Will Fuel Market Growth

Currently, housing costs in China are high and still rising. The entire society is concerned about the phenomenon of rising housing costs. Ordinary families cannot afford a home and the pressure of filling up all available housing options has led to discontent with the high cost of housing. In an effort to stabilise home prices, the government has also implemented a number of control measures, although these have not been successful in slowing the increase in prices. The national economy's ability to grow healthily has been gravely hampered by the current, sustained high home prices. Real estate bubbles' formation will lead to economic stagnation, and excessive housing costs will result in a number of social and economic issues. Home loan market will directly be influenced by increasing housing loans. In the primary market, mortgages come in the form of commercial personal loans and Housing Provident Fund (HPF) loans. Due to the amount limitations on HPF loans and the fact that they are sometimes insufficient to close deals because of the high cost of housing, hybrid mortgages that combine the maximum amount of HPF and commercial mortgages were created. The majority of mortgages in the market are commercial mortgage loans. Therefore, rising housing prices will have direct impact on China home loan market.

 

Increasing Household Construction Will Boost The Market Growth

The macroeconomic and socioeconomic development of a country is significantly influenced by the construction of new homes. New housing development has a large direct and indirect impact on the overall loan market. This is especially true in countries with economies that are supposedly driven by construction, such as Spain and China. The Chinese government started its housing market reform to better living conditions of urban residents and provide enough houses for immigrants from rural areas. Owing to the reform, there has been a significant increase in housing demand and price growth, more new homes were being built. A significant number of people moved from rural to urban areas in search of work, as a result of the swift economic growth. The housing reform gave families the opportunity to buy more comfortable homes. The need for more comfortable living drove up home prices even further, which attracted more capital and loans for the development of more homes. China invested $29 billion in special financing to complete housing projects. As a result, countless new house construction projects and more new real estate businesses were launched in urban China. Thus, all these factors played an important role in China home loan market.

 

Low Interest Rate of Home Loan in China Will Lead to Market Growth

China permitted banks to lower the limit on home loan interest rates. The People's Bank of China and China's Banking and Insurance Regulatory Commission state that the purpose of the action is to support housing demand and encourage the market for housing market in the nation to grow healthily.  In response to weak market demand, Chinese authorities are easing limits on home purchases in some locations. Evergrande, a major domestic real estate player, has reported growing liabilities, and other businesses have seen a dramatic decline in revenues. In addition to interest rates dropping, loans are being granted more quickly. In China, nearly one-fifth of all bank loans are for home loans. In the 103 locations across the country, applicants receive their loans in around a month, with 19 cities taking less than 20 days. Thus, lower interest of home loans in China is expected to boost the market growth.

 



Download Free Sample Report


Market Segmentation

The China Home Loan Market is segmented based on type, end user, tenure period, region, and competitional landscape. Based on type, the market is further fragmented into home purchase, refinance, home improvement, construction, others (re-sale, etc.). Based on end user, the market is segmented into employed individuals, professionals, students, entrepreneur, others (homemaker, unemployed, retired, etc.). Based on tenure period, the market is segmented into less than 5 years, 6-10 years, 11-24 years, and 25-30 years. On the basis of region, the market is divided into North, East, North-East, South-Central, North-West, South-West.

 

Company Profiles

ICBC Co., Ltd., Bank of China, China Construction Bank Corporation, Agricultural Bank of China Limited, Hua Xia Bank Co., Limited, Industrial Bank Co., Ltd., China Everbright Bank Co., Ltd., Postal Savings Bank Of China (PSBC), China CITIC Bank International Limited and China Merchants Bank Co., Ltd. are the major players in the China Home Loan Market.

Attribute

Details

Base Year

2022

Historical Years

2018–2021

Estimated Year

2023E

Forecast Period

2024F –2028F

Quantitative Units

Revenue in USD Million and CAGR for 2018-2022 and 2023E- 2028F

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Type

End User

Tenure Period

Company

Regional Scope

North, East, North-East, South-Central, North-West, South-West

Key Companies Profiled

ICBC Co., Ltd., Bank of China, China Construction Bank Corporation, Agricultural Bank of China Limited, Hua Xia Bank Co., Limited, Industrial Bank Co., Ltd., China Everbright Bank Co., Ltd., Postal Savings Bank Of China (PSBC), China CITIC Bank International Limited and China Merchants Bank Co., Ltd.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 

Report Scope:

In this report, China Home Loan market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

  • China Home Loan Market, By Type:
    • Home Purchase
    • Refinance
    • Home Improvement
    • Construction
    • Other
  • China Home Loan Market, By End User:
    • Employed Individuals
    • Professionals
    • Students
    • Entrepreneur
    • Others
  • China Home Loan Market, By Tenure Period:
    • less than 5 years
    • 6-10 years
    • 11-24 years
    • 25-30 years
  • China Home Loan Market, By Region:
    • North
    • East
    • North-East
    • South-Central
    • North-West
    • South-West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in China home loan market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

It is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Market)

4.1.  Sample Size Determination

4.2.  Respondent Demographics

4.2.1.     By Gender

4.2.2.     By Age

4.2.3.     By Occupation

4.3.  Brand Awareness

4.4.  Factors Influencing Purchase Decision

4.5.  Sources of Information

4.6.  Challenges Faced After Purchase

5.    China Home Loan Market Outlook

5.1.  Market Size & Forecast          

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.     By Type Market Share Analysis (Home Purchase, Refinance, Home Improvement, Construction, Others (Re-Sale etc.))

5.2.2.     By End User Market Share Analysis (Employed Individuals, Professionals, Students, Entrepreneur, Others (Homemaker, Unemployed, Retired, etc.))

5.2.3.     By Tenure Period Market Share Analysis (Less than 5 years, 6-10 years, 11-24 years, and 25-30 years)

5.2.4.    By Regional Market Share Analysis

5.2.4.1.         North Market Analysis

5.2.4.2.         East Market Analysis

5.2.4.3.         North-East Market Analysis

5.2.4.4.         South-Central Market Analysis

5.2.4.5.         North-West Market Analysis

5.2.4.6.         South-West Market Analysis

5.2.5.     By Company Market Share Analysis

5.3.  China Home Loan Market Mapping & Opportunity Assessment

5.3.1.     By Type Market Mapping & Opportunity Assessment

5.3.2.     By End User Market Mapping & Opportunity Assessment

5.3.3.     By Tenure Period Market Mapping & Opportunity Assessment

5.3.4.     By Regional Market Mapping & Opportunity Assessment

6.    China Home Purchase Home Loan Market Outlook

6.1.  Market Size & Forecast          

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By End User Market Share Analysis

6.2.2.     By Tenure Period Market Share Analysis

7.    China Refinance Home Loan Market Outlook

7.1.  Market Size & Forecast          

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By End User Market Share Analysis

7.2.2.     By Tenure Period Market Share Analysis

8.    China Home Improvement Home Loan Market Outlook

8.1.  Market Size & Forecast          

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By End User Market Share Analysis

8.2.2.     By Tenure Period Market Share Analysis

9.    China Construction Home Loan Market Outlook

9.1.  Market Size & Forecast          

9.1.1.     By Value

9.2.  Market Share & Forecast

9.2.1.     By End User Market Share Analysis

9.2.2.     By Tenure Period Market Share Analysis

10.  Market Dynamics

10.1.              Drivers

10.1.1.  Increasing housing cost

10.1.2.  Rising household construction

10.1.3.  Low interest rates

10.2.              Challenges

10.2.1.  Surging competition

10.2.2.  Security concerns

11.  Impact of COVID-19 on China Home Loan Market

11.1.              Impact Assessment Model       

11.1.1.  Key Segments Impacted

11.1.2.  Key Regions Impacted

12.  Market Trends & Developments

12.1.              Increasing number of fintech companies

12.2.              Growth of nonbank lenders

12.3.              Automation in loan process

12.4.              Rapid urbanization

12.5.              Attractive marketing strategies

13.  Porter’s Five Forces Model

13.1.              Competitive Rivalry

13.2.              Bargaining Power of Buyers

13.3.              Bargaining Power of Suppliers

13.4.              Threat of New Entrants

13.5.              Threat of Substitutes

14.  Policy & Regulatory Landscape

15.  China Economic Profile

16.  Competitive Landscape

16.1.              Company Profiles

16.1.1.  ICBC Co., Ltd.

16.1.1.1.      Company Details

16.1.1.2.      Product & Services

16.1.1.3.      Financials (As Per Availability)

16.1.1.4.      Key market Focus & Geographical Presence

16.1.1.5.      Recent Developments

16.1.1.6.      Key Management Personnel

16.1.2.  ICBC Co., Ltd.

16.1.2.1.      Company Details

16.1.2.2.      Product & Services

16.1.2.3.      Financials (As Per Availability)

16.1.2.4.      Key market Focus & Geographical Presence

16.1.2.5.      Recent Developments

16.1.2.6.      Key Management Personnel

16.1.3.  China Construction Bank Corporation

16.1.3.1.      Company Details

16.1.3.2.      Product & Services

16.1.3.3.      Financials (As Per Availability)

16.1.3.4.      Key market Focus & Geographical Presence

16.1.3.5.      Recent Developments

16.1.3.6.      Key Management Personnel

16.1.4.  Agricultural Bank of China Limited

16.1.4.1.      Company Details

16.1.4.2.      Product & Services

16.1.4.3.      Financials (As Per Availability)

16.1.4.4.      Key market Focus & Geographical Presence

16.1.4.5.      Recent Developments

16.1.4.6.      Key Management Personnel

16.1.5.  Hua Xia Bank Co., Limited

16.1.5.1.      Company Details

16.1.5.2.      Product & Services

16.1.5.3.      Financials (As Per Availability)

16.1.5.4.      Key market Focus & Geographical Presence

16.1.5.5.      Recent Developments

16.1.5.6.      Key Management Personnel

16.1.6.  Industrial Bank Co., Ltd.

16.1.6.1.      Company Details

16.1.6.2.      Product & Services

16.1.6.3.      Financials (As Per Availability)

16.1.6.4.      Key market Focus & Geographical Presence

16.1.6.5.      Recent Developments

16.1.6.6.      Key Management Personnel

16.1.7.  China Everbright Bank Co., Ltd.

16.1.7.1.      Company Details

16.1.7.2.      Product & Services

16.1.7.3.      Financials (As Per Availability)

16.1.7.4.      Key market Focus & Geographical Presence

16.1.7.5.      Recent Developments

16.1.7.6.      Key Management Personnel

16.1.8.  Postal Savings Bank Of China (PSBC)

16.1.8.1.      Company Details

16.1.8.2.      Product & Services

16.1.8.3.      Financials (As Per Availability)

16.1.8.4.      Key market Focus & Geographical Presence

16.1.8.5.      Recent Developments

16.1.8.6.      Key Management Personnel

16.1.9.  China CITIC Bank International Limited

16.1.9.1.      Company Details

16.1.9.2.      Product & Services

16.1.9.3.      Financials (As Per Availability)

16.1.9.4.      Key market Focus & Geographical Presence

16.1.9.5.      Recent Developments

16.1.9.6.      Key Management Personnel

16.1.10.                China Merchants Bank Co., Ltd.

16.1.10.1.    Company Details

16.1.10.2.    Product & Services

16.1.10.3.    Financials (As Per Availability)

16.1.10.4.    Key market Focus & Geographical Presence

16.1.10.5.    Recent Developments

16.1.10.6.    Key Management Personnel

17.  Strategic Recommendations/Action Plan

17.1.              Key Focus Areas

17.2.              Target Regions

17.3.              Target Type

17.4.              Target End User

17.5.              Target Tenure Period

18. About Us & Disclaimer

(Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

down-arrow

The key factors driving the growth of China Home Loan Market are increasing digitization, increasing housing construction, low interest rate, and rising housing cost.

down-arrow

In 2022, the China Bank Lending Rate was reported to be 3.650% pa.

down-arrow

China lends to developing nations at a much higher ratethan Western governments or multilateral organizations do. Debt payments are increasing at a time when these countries can least afford them due to the quick rise in global interest rates.

down-arrow

The key players in the China Home Loan market are ICBC Co., Ltd., Bank of China, China Construction Bank Corporation, Agricultural Bank of China Limited, Hua Xia Bank Co., Limited, Industrial Bank Co., Ltd., China Everbright Bank Co., Ltd., Postal Savings Bank Of China (PSBC), China CITIC Bank International Limited and China Merchants Bank Co., Ltd.

profile

Srishti Verma

Business Consultant
Press Release

China Home Loan Market to be Dominated by Home Purchase Segment During the Forecast Period

Feb, 2023

Increasing housing cost and rising household construction in China to fuel the growth of the home loan market across the country through 2028.