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China Update: Implications of the New Policy to Lower Interest Rates on Outstanding Mortgages and Other Related Changes
China's real estate market is a focus of interest. Recent changes in policies on mortgage rates and down payments aim to address challenges. The People's Bank of China (PBoC) and the National Administration of Financial Regulation (NAFR) introduced these changes on August 31. They reduce interest rates on outstanding mortgages and standardize down payment ratios. Guangzhou and Shenzhen also moved to expand the eligibility of first-home buyer benefits. These changes reflect efforts to stabilize the property market and boost consumption, but their impact on the economy remains relatively modest. Key points: • China ... (full story)