Overview

• Commercial banks must lower interest rates on existing mortgages by October 31, 2024, to at least 30 basis points below the Loan Prime Rate.
• The new policies aim to alleviate the financial burden on households affected by the slowing economy and cautious consumer sentiment.
• The minimum down payment ratio for first and second homes will be reduced to no less than 15 percent.
• Financial institutions will receive increased funding to support local state-owned enterprises in acquiring unsold commercial housing for affordable housing.
• The measures follow a series of property stimulus efforts that have struggled to boost sales and liquidity in China's crisis-hit real estate market.