February 4, 2023

China cuts mortgage rate as property crisis deepens:

China’s central bank has cut its mortgage rate as officials work to support the crisis hit property market. The bank has lowered the five year loan rate by 1.5%, which is the biggest cut in history. Lockdowns due to the country’s strict zero-Covid policies are also affecting businesses and consumers. Home sales in China have fallen for 11 months in a row, official data shows. That is the longest slump since China created a private property market in the late 1990s. Several Chinese developers have halted building work on homes that had already been sold, because of concerns over their finances. Hundreds of home buyers are also known to have threatened to stop paying their mortgages until the work restarts.

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