Three major China banks to lower rates on existing first-home mortgages
2023.09.06 23:52
© Reuters. FILE PHOTO: People walk past a branch of Industrial and Commercial Bank of China (ICBC) in Beijing, China April 1, 2019. REUTERS/Florence Lo/File Photo
BEIJING (Reuters) – Three of China’s major state banks said on Thursday they will start to lower interest rates on existing mortgages for first-home loans.
The move is one of several support measures flagged by Beijing in recent weeks for the country’s crisis-ridden property sector amid mounting concerns over the health of the world’s second-largest economy.
Interest rates on existing first-home loans will be cut to the level in place when a home was purchased, the Industrial and Commercial Bank of China Ltd (ICBC), Agricultural Bank of China (OTC:) and Bank of China Ltd (BOC) said in statements.
The reduction will come into effect on Sept. 25, they said.
China’s home loans totalled 38.6 trillion yuan ($5.3 trillion) at the end of June, representing 17% of banks’ total loan books.
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