Chinese Banks Slash Mortgage Rates to Boost Property Market

Five major state banks in China have announced plans to lower interest rates on existing mortgages for first-home loans, as part of a series of support measures introduced by Beijing. The move aims to help homebuyers and address concerns over the health of the country's economy and property sector. The interest rates on first-home loans will be reduced to floor levels at the time of purchase, with an estimated average reduction of 50 basis points. This could potentially save first-time buyers around 200 billion yuan ($27.31 billion) per year. The mortgage rate cuts will put pressure on banks' margins, but they are expected to support the government's efforts to stimulate the economy.