Multiple banks in China have made batch adjustments to the interest rates of existing personal housing loans starting on Friday.
It is estimated that the batch adjustments will benefit 50 million households and 150 million people across the country, reducing the total amount of household mortgage loan expenses by about 150 billion yuan (about 21 billion U.S. dollars) on average each year.
In many parts across China, many existing mortgage loan borrowers could see the adjusted mortgage interest rates through their banking apps on mobile phones on Friday morning.
"We can see on the app that the mortgage interest rate has indeed been adjusted. I remember that it was 4.5 percent before, and now it is 3.65 percent. The monthly payment was more than 3,500 yuan (about 491 U.S. dollars) before, and after the adjustment, it will be around 3,200 yuan (449 U.S. dollars) in the next installment period, basically a decrease of about 300 yuan (about 42 U.S. dollars)," said a resident in Beijing.
The interest rates on existing mortgage loans were adjusted in batches by the banks, and customers do not need to make applications.
Except for loans in Beijing, Shanghai, Shenzhen and for second home loans, the interest rates of other eligible mortgages will be adjusted to LPR-30 basis points below the Loan Prime Rate (LPR).
The LPR is the most preferential lending rate offered by a commercial bank to its prime clients, and serves as a reference for other lending rates across the economy.
As of 10:00 Friday, China’s six state-owned banks and several joint-stock banks such as Industrial Bank and China Zheshang Bank have completed the adjustments in most regions. While the small and medium-sized banks announced to complete the adjustments before the end of this month.
The People's Bank of China (PBOC), the country's central bank, on Monday announced to cut the market-based benchmark lending rate, with both the one-year LPR and the over-five-year LPR being lowered.
The over-five-year LPR, on which many lenders base their mortgage rates, fell to 3.6 percent, reduced by 0.25 percentage points from the previous reading, according to the National Interbank Funding Center. The reduction in LPR means the monthly payments will be further reduced for loan borrowers, further alleviating the pressure.
Chinese banks make batch adjustments on interest rates of existing home loans
The "soft landing" of the China-EU electric vehicle case will greatly boost market confidence and inject new momentum into China-EU cooperation in automobile trade and investment, a spokeswoman of the Ministry of Commerce (MOC) said at a press briefing in Beijing on Thursday.
He Yongqian, the spokeswoman, made the remarks after China and the European Union (EU) agreed on the necessity of providing general guidance on price undertakings for Chinese companies exporting battery electric vehicle (BEV) passenger cars to the EU.
"China and the EU simultaneously announced on Monday that they had achieved positive outcomes following multiple rounds of consultations on the EV case, a development that has drawn wide attention at home and abroad. Industry players from both sides have 'highly welcomed and fully endorsed' the outcome, saying the 'soft landing' of the case is expected to greatly boost market confidence and inject new momentum into China-EU cooperation in automobile trade and investment. Some EU politicians have described it as a positive step toward building a sustainable China-EU trade relationship, and said it demonstrated that resolving trade differences through partnership remains feasible," she said.
"Against the current international backdrop, China and the EU, acting in a spirit of mutual respect and within the framework of WTO rules, have properly addressed the EV case, which is of significant positive importance. The outcome will not only contribute to the sound development of China-EU economic and trade ties and help safeguard the stability of the global automotive industrial and supply chains, but will also send a clear and strong signal that both sides are willing to uphold a rules-based international trading order, setting a good example for countries to resolve differences through dialogue and consultation and injecting greater certainty and positive energy into global economic growth," she said.
"China appreciates the spirit of dialogue showed by the EU side and stands ready to work with the EU, building on the current positive outcomes, to further implement the consensus reached by the leaders of the two sides, maintain dialogue and communication, and support stable industrial and supply chains on both sides, continue to deepen cooperation on the basis of market principles, and make active contributions to the global green transition," she added.
"Soft landing" of China-EU EV case to significantly boost market confidence: MOC spokeswoman
