Surging deposits at China's biggest banks signal the country's equity and property market rallies this year are sustainable, not loan-fueled bubbles as some analysts have suggested, said Henderson Global Investors Ltd.

Deposits at the four largest listed banks grew by 4.3 trillion yuan in the first half of 2009, according to data from company filings compiled by Bloomberg. That's more than the 3-trillion-yuan increase in loans from the same banks, Bloomberg data show.

The steeper rise in deposits suggests many State-owned companies haven't spent their loans yet, said Henderson's Andrew Beal. The money manager's view contrasts with warnings from CLSA Ltd strategist Christopher Wood and former Morgan Stanley economist Andy Xie that borrowed money may be spurring asset bubbles.