China will lower mortgage rates on existing home loans to a level similar to those of newly issued housing loans, according to an announcement of the People's Bank of China (PBC) on Sunday.
The PBC has required all commercial banks to carry out the adjustment of existing home loans before October 31, 2024. For the basis points added to the existing home loans interest rate that is higher than -30 basis points, it will be uniformly adjusted to -30 basis points, and it will not be below the lower limit of the basis points added to the newly issued housing loans currently implemented in a city (if any).
The average reduction in mortgage rates for existing home loans is expected to be around 0.5 percentage points. The adjustment is made to reduce the interest burden on mortgage borrowers.
The minimum down payment ratio for both first and second homes will be unified, except for cities that have a lower limit of mortgage interest rate policy, and set different mortgage interest rate for the first and second homes.
China to lower mortgage rates for existing home loans
China's Minister of Commerce Wang Wentao outlined the key priorities of the 32nd Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting, which opened on Friday in Suzhou, East China's Jiangsu province.
In an interview with CGTN ahead of the two-day meeting, Wang said free trade, digital cooperation and green economy are high on the agenda of the meeting.
"The key areas include advancing regional economic integration and the Free Trade Area of the Asia-Pacific, supporting the World Trade Organization (WTO) in strengthening digital cooperation and developing green economy. At present, the international situation is marked by intertwined turbulence and chaos, with intensified geopolitical instability. The rise of unilateralism and protectionism poses serious challenges to the international economic and trade order, disrupting global and Asia-Pacific development. Against this backdrop, all parties have higher expectations for this trade ministers' meeting, hoping that it can build consensus and deliver outcomes," Wang said.
This year marks China's third time hosting the APEC meetings and the 35th anniversary of its membership.
By 2025, China had become the largest trading partner of 13 APEC economies. Trade between China and APEC economies reached 3.7 trillion U.S. dollars, accounting for 57.8 percent of China's total foreign trade.
China has signed 24 free trade agreements or economic and trade arrangements with 31 countries and regions, including 15 APEC economies. In recent years, China has also completed upgrades of free trade agreements with APEC economies such as Singapore and Peru.
The minister said that China has always been a firm supporter and an important contributor to APEC.
"We have actively shared our vast market and development opportunities with all parties. China's door to the world will only open wider and wider. Facing the common challenges, China will continue to fulfill its responsibilities as a major country, further deepen reform, expand high-standard opening-up, and continue to provide new opportunities for the Asia-Pacific region and the world with its new achievements in Chinese modernization," the minister said.
China's Commerce Minister outlines priorities for 32nd APEC trade ministers' meeting
