Official reports from China's major banks or financial news outlets

China's Major Banks to Cut Mortgage Rates by Average Half Point for 90% of Loans Starting October 25

Oct 17, 2024, 02:39 AM

China's major state-owned banks are set to reduce interest rates on existing mortgage loans starting October 25, in a move aligned with the central bank's policies to stabilize the property market and support the world's second-largest economy. The People's Bank of China (PBOC) Deputy Governor Tao Ling announced that the rate cuts will apply to approximately 90% of existing mortgages, with interest rates expected to decrease by an average of half a percentage point or reduced to 30 basis points below the loan prime rate. This adjustment is anticipated to benefit 50 million households and 150 million residents. While the six major national commercial banks will begin implementing the changes on October 25, some small and medium-sized lenders may complete the adjustments slightly later, with the overall process expected to be fully completed by October 31.