The Chinese central bank will lower interest rates on its housing provident fund, adding that it will abolish the lower limit of rates for said fund for first and second homes at the national level. This comes as China’s vice premier is also on the wires commenting:
- Must effectively ensure delivery of homes
- Local governments can purchase some homes for affordable housing at ‘reasonable prices’
- Local governments can purchase existing land
- To continue to fend off debt risks of property developers
China’s property market has been in a very poor state since the Covid pandemic. The downturn in housing is now stretching on for a third straight year, which is quite unprecedented for China. So, Beijing is definitely trying to pull out all the stops here to try and come to the rescue.
