As it became known, on weekends China's top banking regulator published a strongly worded warning concerning the risks of country's surge in loan growth in the first half of this year. 

According to the words of Liu Mingkan, the head of the China Banking Regulatory Commission, the risk of real-estate loans must be under strong control as the country's banking loans growth has led to accumulated risks also increasing, despite the first half of the year reflected loans expanded rapidly and helped play an important role in stabilizing the economy.

Thus, the banks should strictly follow criteria for granting loans on second mortgages, closely observe capital adequacy ratio standards and ensure the quality of loans, Liu emphasized. 

Chinese banks made 1.53 trillion yuan (that equals $223.9 billion) in June, that is more than double the 664.5 billion yuan in lending seen in May. That brought aggregate new lending to date for 2009 to 7.37 trillion yuan, up 201% from the first half of 2008, and already well above the official full-year target of 5 trillion yuan.