China changes mortgage rates anchor to curb housing risks

Home loan rates may be set higher to avoid real estate bubbles

china-buildings
The PBoC is looking to curb real estate speculation

China’s authorities will change the anchor for mortgage rates to the new loan prime rate (LPR) starting from early October, a move seen as aiming to curb housing risks and clamp down on property speculation.

Banks will set mortgage loans based on the LPR, effective from October 8, the People’s Bank of China (PBoC) said in a statement on August 25.

The announcement came around a week after the central bank reformed the rates mechanism to cut funding costs as economic growth slows. The new

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.