This document is a study of the mortgage market of China by Economy Watch. It says mortgage lending in China has been growing at a rate of 54.9% between 2000 and H2004. The housing mortgage in China is not so old in comparison to others. In China, the biggest provider of home mortgage loans is the China Construction Bank (CCB). The housing loans made by the four state-owned commercial banks were RMB355.6 billion (about the U.S. $43 billion) in the year 1999. Of the total loans, RMB217.2 billion (about the U.S. $26.3 billion) went to real estate developers and RMB 126 billion (U.S. $15.2 billion) to the mortgage loan sector accounting for about 35% of the country’s overall real estate loan amount at the end of 1999. The success of the reforms in 1998 has translated into a booming domestic property sector and an acceleration in housing investments in china. The share of residential housing investment as a percentage of GDP has risen to 5.6% in 2003, up from less than 3% before 1998 and less than 1% before the 1990s. This is in comparison to other developed or emerging economies that had undertaken a higher share of residential housing investments for decades.