China announces series of actions to stabilize the real estate market
On Sunday, the People's Bank of China, the nation's central bank, along with the National Financial Regulatory Administration, introduced a series of policies aimed at stabilizing the real estate market.
TroibNews 
China's financial authorities, including the People's Bank of China and the National Financial Regulatory Administration, introduced a series of policies on Sunday aimed at stabilizing the real estate market.
Mortgage rates for first homes, second homes, and additional properties must not fall below 30 basis points below the loan prime rate by October 31, 2024, to alleviate financial stress for property owners.
Eighteen major national commercial banks are expected to announce their adjustment plans by October 12.
The required minimum down payment ratio for commercial housing mortgages for both first and second homes will be reduced to no less than 15 percent.
The interest rate pricing mechanism for individual commercial housing mortgages will be improved, allowing rates to be adjusted dynamically based on agreements between borrowers and banks.
The central bank plans to enhance funding for financial institutions issuing loans to local state-owned enterprises for acquiring completed but unsold commercial housing at reasonable prices, intended for use as affordable housing.
Additionally, some financial measures for the property market will be extended.
These stimulus measures were announced following a recent meeting of the Political Bureau of the Communist Party of China Central Committee, which emphasized the need to reverse the real estate market's downturn and establish stability.
Analysts from Morgan Stanley indicated in a research note provided to CN on Sunday that many of these recent stimulus measures have surpassed expectations.
They highlighted the Chinese government's "forceful" monetary easing and unprecedented steps to stabilize and support the stock market while aiming to stop the decline in the property market, anticipating further measures in the coming months.
The analysts project "modest" quarterly economic growth as the year progresses, followed by an increase to 5.3 percent in quarterly growth by the first quarter of 2025.
Debra A Smith contributed to this report for TROIB News
Mortgage rates for first homes, second homes, and additional properties must not fall below 30 basis points below the loan prime rate by October 31, 2024, to alleviate financial stress for property owners.
Eighteen major national commercial banks are expected to announce their adjustment plans by October 12.
The required minimum down payment ratio for commercial housing mortgages for both first and second homes will be reduced to no less than 15 percent.
The interest rate pricing mechanism for individual commercial housing mortgages will be improved, allowing rates to be adjusted dynamically based on agreements between borrowers and banks.
The central bank plans to enhance funding for financial institutions issuing loans to local state-owned enterprises for acquiring completed but unsold commercial housing at reasonable prices, intended for use as affordable housing.
Additionally, some financial measures for the property market will be extended.
These stimulus measures were announced following a recent meeting of the Political Bureau of the Communist Party of China Central Committee, which emphasized the need to reverse the real estate market's downturn and establish stability.
Analysts from Morgan Stanley indicated in a research note provided to CN on Sunday that many of these recent stimulus measures have surpassed expectations.
They highlighted the Chinese government's "forceful" monetary easing and unprecedented steps to stabilize and support the stock market while aiming to stop the decline in the property market, anticipating further measures in the coming months.
The analysts project "modest" quarterly economic growth as the year progresses, followed by an increase to 5.3 percent in quarterly growth by the first quarter of 2025.
Debra A Smith contributed to this report for TROIB News
