0.05%p from the 21st following the base rate cut ↓
[촬영 차대운]
(Shanghai = Yonhap News) Correspondent Cha Dae-woon = China’s central bank, the People’s Bank of China, lowered the loan preferential rate (LPR), which is the de facto base rate, on the 20th, and the interest rate on home mortgage loans in China fell slightly.
The economic media, Tsai Lian Xi, reported that starting on the 21st, banks in major cities in China, including Beijing, Shanghai and Shenzhen, will cut mortgage rates by 0.05 percentage points.
This is in response to the 5-year LPR, which is the standard for mortgage interest rates, by 0.05 percentage points from the previous day’s 4.65% to 4.6%.
It is the first time in 21 months since April 2020 that the 5-year LPR, which is linked to a mortgage loan, fell.
The applicable interest rate varies by city and number of houses.
As for the number of single-family homes, Beijing, Shanghai and Shenzhen account for 5.15%, 4.95%, and 4.9%, respectively.
As the People’s Bank of China lowered the LPR for two months in a row since December last year to revive the rapidly cooling economy, some in the market are also expecting it to be of some help in recovering the frozen real estate market sentiment.
This is because the interest rate cut can ease the interest rate burden on Chinese real estate developers, such as Hengda, who are in a liquidity crisis, and help restore the purchasing sentiment of home buyers.
In an article analyzing the effect of the LPR cut the day before, the South China Morning Post (SCMP) said, “The lowered interest rate will provide breathing room for Chinese real estate developers who have to pay off $216.5 billion of offshore bonds in the first half of this year alone.” “Although it is only 0.05 percentage points, lower mortgage rates will entice end-users into a completely frozen real estate market,” he said.
cha@yna.co.kr
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2022/01/21 12:23 Send
