China unveils rate cut, mortgage subsidies to spur growth
The central bank lowered its PSL rate to 1.5% and the finance ministry added a 1 percentage-point mortgage subsidy for eligible first-time buyers.
- On Tuesday, The People's Bank of China cut the interest rate on its pledged supplementary lending facility to 1.5% while the Ministry of Finance introduced mortgage interest subsidies for first-time homebuyers.
- Beijing rolled out these measures to bolster the economy as pressures ramp up before the year-end growth target of 4.5%-5%, with the property sector facing yearslong pressure and home prices falling roughly 20% since 2021.
- The PBOC raised its relending quota for technological innovation by 200 billion yuan to 1.4 trillion yuan, while increasing support for farm, small business, and private enterprise lending to stabilize market growth.
- Starting October 1, the government will provide an annual interest subsidy of 1 percentage point for up to five years on new commercial mortgages, capped at 1 million yuan per eligible household.
- Gary Ng, a senior economist for Asia Pacific at French bank Natixis, described the measures as "a targeted approach with lower funding costs to support selected sectors," particularly in lower-tier cities facing severe headwinds.
16 Articles
16 Articles
The Toronto Star
China rolls out new measures to bolster its property sector and economy
BEIJING (AP) — China on Tuesday rolled out new measures to help boost its economy and sluggish property sector as pressures ramp up ahead of a year-end target for hitting the government's economic growth goal.
China unveils rate cut, mortgage subsidies to spur growth
China unveiled measures on Tuesday designed to steer cheaper credit into a range of sectors including infrastructure and technology, as well as expanding support for home buyers, in a fresh bid to shore up its slowing economy.
(Beijing=Yonhap News) Correspondent Han Jong-gu = The Chinese government will support a portion of mortgage interest for households purchasing their first home starting next month.
(Dan Tri Newspaper) - The People's Bank of China (PBOC) has announced a new package of measures to support the economy, including lowering interest rates for policy banks and, for the first time, introducing a policy of subsidizing interest rates on home mortgage loans.
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