The central bank's Shanghai headquarters has again urged local lenders to limit loans for property development and other infrastructure projects, as credit growth to these sectors continues to skyrocket ahead of the 2010 World Expo. A central bank report said loans for infrastructure in the city surged by 1.83 billion yuan - or 156 per cent - year on year to 3 billion yuan last month. The People's Bank of China said the bulk of the credit rise went to real estate development, the Oriental Morning Post reported. 'Credit for infrastructure and property development grew at a very high speed, with mid- and long-term loans making up a high proportion of loans,' the report said, without releasing the amount allocated to the property sector. Mid- and long-term projects had increased their share of overall loans by 2.9 per cent since the start of this year, the report said. The central bank's Shanghai headquarters could not be reached for comment yesterday. In May, Shanghai's banks were warned about the financial risks from property-related loans. But analysts said that alarm and increased interest rates had not had any noticeable effect. Kenny Ho, associate director of Jones Lang LaSalle's research department, said there was no sign of any slowdown in investment in the Shanghai property market. 'Banks should learn to assess credit risks and improve their credit management skills. But many of them issue loans just at the bottom of the interest range, under the severe competitive environment.'