China's central bank on Friday announced the removal of lower limit for mortgage rates for buying new and second-hand homes to support a healthy, stable development of the home market.
In addition to the removal, the People's Bank of China (PBOC) also announced to lower housing provident fund loan rates and cut the down payment ratios for buying new and second-hand homes.
According to a PBOC notification, local branches now have the right to independently determine the floor level for commercial mortgages, and financial institutions should appropriately determine interest rates based on business conditions and client risks.
The loan rates of individual housing provident fund will be cut by 0.25 percentage points, the bank announced.
Starting on May 18, the interest rate of first-home loans that mature within or at five years will be set at 2.35 percent, while the over-five-year rate will be slashed to 2.85 percent.
For second-home purchases, the interest rate of loans that mature within or at five years will be no lower than 2.775 percent, while the over-five-year rate will be no lower than 3.325 percent.
The housing provident fund is a long-term housing savings plan made up of compulsory monthly deposits by both employers and employees. It can only be used by employees for house-related expenses.
Meanwhile, the minimum down payment ratios for individuals' commercial housing mortgages will be lowered to no less than 15 percent for first-home purchases, and 25 percent for second-home purchases, according to the bank and National Financial Regulatory Administration.
China's central bank removes lower limit on mortgage rates
China's central bank removes lower limit on mortgage rates
On his second official visit to China, Prime Minister of the Republic of Vanuatu Charlot Salwai expressed admiration for China's remarkable ability to balance preserving its cultural heritage with embracing innovative transformation.
Salwai paid an official visit to China from July 7 to 12. During his trip, he toured the southern province of Guangdong and explored the megacities of Beijing and Shanghai. His visit included tours of high-tech companies, a ride on a high-speed train, and a performance of traditional Cantonese opera.
In an interview with China Central Television Network (CCTV) aired on Friday, Salwai recounted his journey starting with a warm welcome that included enjoying Beijing Roast Duck, also known as Peking Duck -- a culinary delight introduced to him by the Chinese ambassador in Vanuatu.
"Many had to say. Peking Duck. Because we had it here on our arrival, so it was very tasty. And I understand that the Chinese ambassador in Vanuatu brought us to one of the traditional restaurants, small but beautiful," he said. The prime minister sees China's preservation of its culture as a vital lesson in understanding one's roots and the journey to the present day, acknowledging China's efforts to integrate cultural preservation with modernization.
"It's going to be my second official visit to China. I'm always impressed to see big changes and especially innovations made by China and especially the cities. Because a big impression is to see how China continues to maintain and keep its culture. Because I think it's the basis of everything -- to know where you come from and to understand where we are today. I feel that China is doing a lot to maintain its culture, but at the same time, doing, innovating to transform its culture,” Salwai said.
He also emphasized the importance of learning from China's sustainable development strategies.
"Today, it comes from a long way, some hardship, the government, and also the people of China. So, I'm impressed to see what is done, especially how China associates infrastructure development with nature. That's meant to keep, continue to keep the environment. It takes effort with the climate change by maintaining the ecosystem. I think it's something that, for a small country like Vanuatu, is important to learn. So, we are here. I'm here with my delegation to learn," Salwai said.
Vanuatu's PM commends China's cultural preservation, innovation amid fast growth
