MNI BRIEF: Positive Signs In Property Market - PBOC's Zou

Chinese credit data point to property sector recovery and lower interest rates on existing mortgage loans will boost consumption and investment, People’s Bank of China monetary policy department head Zou Lan told reporters on Friday.

Real estate development loans and mortgage loans from major banks increased by over CNY100 billion in September from August, showing a clear upward trend, he said. Interest rate cuts are in the process of being applied to CNY22 trillion yuan of existing mortgage loans to first home buyers with the weighted average interest rate falling by 0.73 percentage point to 4.27% he said. (See MNI: PBOC Seen Helping Banks To Cut Existing Mortgage Rates)

The Bank will balance the objectives of ensuring reasonable profits for commercial banks and of reducing funding cost of the economy via making the interest rate policy more targeted and coordinated, Zou noted.