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Mortgage Markets Worldwide Edited by Danny Ben-Shahar, Charles Ka Yui Leung and Seow Eng Ong 2008 Blackwell Publishing Ltd, ISBN 978-1-4051-3210-72 Mortgage Markets Worldwide Table 1.1 Outstanding balance of mortgage loans in China from 1998 to 2004. 1998 1999 2000 2001 2002 2003 2004 Mortgage loans RMB billion 43 136 332 560 827 1330 1800 Annual growth RMB billion 30 93 196 228 267 503 470 Annual growth rate 124.21 216 144 69 48 61 35 Mortgage as of total bank loans 0.5 1.4 3.0 4.6 5.9 7.8 10.1 Mortgage as of GDP 0.5 1.7 3.7 5.8 8.1 11.4 13.2 Source Peoples Bank of China PBoC, CEIC Data Company Ltd CEIC. Background of Chinas housing reform Land and residential housing units in the Peoples Republic of China PRC have been nationalized and owned bythe State since the founding of the PRC in 1949. In the following three decades, the State the central government determined the national economic plans and the government was the monopolypower in terms of housing production, distribution, management and maintenance.
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All residential housing units were allocated to individual households through State-Owned Enterprises SOEs work units called Danwei in Chinese. Virtuallyentire State-owned housing developments were funded bythe annual State BudgetaryFunding. 2 During that period, a residential mortgage system was non-existent in the sector of urban residential housing.