China will lower mortgage rates on existing home loans to a level similar to those of newly issued housing loans, said Pan Gongsheng, governor of the People's Bank of China (PBOC), on Tuesday.
The average reduction in mortgage rates for existing home loans is expected to be around 0.5 percentage points, he told a press conference.
"The new policy is expected to benefit 50 million households, covering a population of 150 million, and lower the total interest expenses for households by approximately 150 billion yuan (about 21.27 billion U.S. dollars) per year on average. It will help boost consumption and investment and reduce the tendency for early loan repayments or illegal refinancing of existing housing loans, to protect the legitimate rights and interests of financial consumers and maintain a stable and healthy order in the real estate market," said Pan.
The minimum down payment ratio for both first and second homes will be unified, with the nationwide minimum down payment ratio for second homes to be reduced from 25 percent to 15 percent,he noted.
On May 17, China announced the establishment of a 300-billion-yuan re-lending facility that supports local state-owned enterprises to use those funds to buy commercial homes for affordable housing.
Pan said the PBOC will increase its funding proportion in the affordable housing re-lending policy from the original 60 percent to 100 percent.
"Previously, when commercial banks issued 10 billion yuan (about 1.42 billion U.S. dollars), the People's Bank of China provided 6 billion yuan (about 853 million U.S. dollars). Now, when commercial banks are still issuing 10 billion yuan, but we are providing 10 billion yuan in low-cost funds, thereby accelerating the inventory reduction process for commercial housing," said the central bank governor.
China to lower mortgage rates on existing home loans
Alex Reporterfy, a Canadian vlogger who has lived in China for decades, has been sharing videos online that showcase the fascinating scenery and vibrant economy of Chongqing, dubbed a "cyberpunk city" by many netizens for its unique landscape and futurist architecture.
Reporterfy's story with China began 30 years ago when he visited the Canton Fair, the country's largest trade fair held in the southern city of Guangzhou. As a journalist and blogger, he likes to share glimpses of his daily life in China on social media and has garnered a substantial following on popular video-sharing platforms including YouTube and Bilibili.
"In my 30 years here in China, I've seen a remarkable change in the country. The government has invested trillions of dollars in infrastructure. Also, the investment in education, the investment in healthcare, the investment in even battery technology, for example, has helped their new energy vehicle markets prosper here. This helps the environment," he said.
Reporterfy has decided to settle in Chongqing, a southwestern city built on mountains, featuring a cityscape of ups and downs and scattered buildings. Over the years, he has been deeply captivated by the city's awe-inspiring natural sceneries, glassy skyscrapers, bustling streets, delicious food and an inclusive local culture.
"And this is a city that has a lot of famous parts about it, not just Chaotianmen or Jiefangbei, also the [outskirt] districts like Dazu, or there's Wuxi County, or there's Wulong. One of the largest monorail lines in the world go through here," said Reporterfy.
Now apart from vlogging, Reporterfy has worked with his local friends in Chongqing to make a film "China's Cyberpunk Futuristic MegaCity 2024."
Featuring ultra-high-definition drone footage, the video takes viewers on a journey through towering skyscrapers, busy commercial centers, neon-lit alleyways and high-tech hubs that define Chongqing's unique character, highlighting a harmonious blend of tradition and innovation, ancient culture and futuristic technology.
Stressing that the video is made up of real drone footage instead of AI-generated pictures, Reporterfy said he and his team captured what they feel the Western countries will see when they come to the city and welcome people from across the world to experience this fantastic place in person.
Canadian vlogger aims to present beautiful, vibrant Chongqing to world
