China Banks Likely to Cut Mortgage Rates: News

China’s local commercial banks are likely to reduce mortgage rates while the local governments may ease the use of pubic funds, loosen purchase requirements and boost personal mortgages to release housing demand, Shanghai Securities News said citing Lian Zhan, chief economist of Zhixi Investment Research Institute. China’s loan rate will continue to steadily fall, supporting industries and SMEs and self-employed badly hurt by the pandemic, stabilize economic fundamentals, the newspaper said interpreting a central bank policy meeting on April 19. Future loan rate will likely depend on reduced LPR plus differentials, and lower refinancing to deliver to weak economic links. As well, banks’ liability management is now on target, it said. Loan rate will continue to steadily fall, supporting industries and SMEs and the self-employed severely hurt by the pandemic, stabilize economic fundamentals.