BEIJING, February 22 (TMTPOST) — China’s property market is injected with a strong boost as the five-year loan prime rate (LPR) was lowered by 25 basis points to 3.95% from 4.20% on Tuesday, while the one-year LPR was left unchanged at 3.45%. Most new and outstanding consumer loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages and mid-and-long term corporate loans. Li Yujia, Chief Researcher at the Housing Policy Research Center of the Guangdong Provincial Planning and Design Institute, told TMTPost, “The reason for such a significant reduction lies in the fundamental weakness of the demand side in the property market and low probability for residents to increase their leverage for…
Published Date: 2024-02-22
Source: tmtpost.com
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