Six of China’s major banks have agreed to adjust mortgage rates for existing home loans at the request of Beijing’s central bank in a bid to revive the teetering property sector and prop up the economy. This move comes as the country aims for economic growth amidst a housing slump that has hindered progress.
The measures announced by China’s major national commercial banks, including the Industrial and Commercial Bank of China and the Bank of China, will see a rate adjustment for existing home loans on October 31 as pressure on homeowners eases. The news has boosted markets in Hong Kong and mainland China, with property developers witnessing significant gains.
Additionally, cities like Guangzhou, Shenzhen, and Shanghai have eased restrictions to make home-buying more accessible. However, analysts warn that more robust fiscal measures may be needed to address the larger macroeconomic challenges faced by the economy.
Amidst efforts to jumpstart growth, China’s manufacturing sector continues to face challenges, highlighting the uphill task for the government in reviving overall economic activity.