China will lower mortgage rates on existing home loans to a level similar to those of newly issued housing loans, according to an announcement of the People's Bank of China (PBC) on Sunday.
The PBC has required all commercial banks to carry out the adjustment of existing home loans before October 31, 2024. For the basis points added to the existing home loans interest rate that is higher than -30 basis points, it will be uniformly adjusted to -30 basis points, and it will not be below the lower limit of the basis points added to the newly issued housing loans currently implemented in a city (if any).
The average reduction in mortgage rates for existing home loans is expected to be around 0.5 percentage points. The adjustment is made to reduce the interest burden on mortgage borrowers.
The minimum down payment ratio for both first and second homes will be unified, except for cities that have a lower limit of mortgage interest rate policy, and set different mortgage interest rate for the first and second homes.
China to lower mortgage rates for existing home loans
China's electric bicycle trade-in program has generated robust sales in first two months of 2025, with over 1 million units traded in during January and February, the Ministry of Commerce said on Monday.
The program facilitated the trade-in of approximately 1.019 million e-bikes in the first two months of 2025, driving new vehicle sales worth 2.66 billion yuan (about 365 million U.S. dollars), the ministry said.
According to ministry data, the initiative has led to a total of 2.4 million old e-bikes being traded in for an equal number of new ones purchased through the trade-in program since its implementation last year, generating about 6.4 billion yuan (over 878 million U.S. dollars) in new sales.
Strong enthusiasm for the e-bike trade-in scheme has continued after five government departments, including the Ministry of Commerce, issued a joint notice in January saying it was extending the program.
So far, the initiative has attracted participation from more than 40,000 retail outlets, primarily individual businesses and small enterprises, indicating growing market enthusiasm.
February saw a particularly strong performance, with 863,000 units traded in, surpassing the previous monthly record of 732,000 units set last year.
China announced a raft of measures at the start of this year to expand the scope of the consumer goods trade-in program amid efforts to boost domestic demand and spur economic growth.
Under the expanded program, the number of home appliance categories eligible for government subsidies have been increased from eight last year to 12 in 2025. Consumers can also enjoy subsidies of up to 500 yuan apiece while purchasing digital products such as mobile phones.
China's e-bike trade-in program drives new sales with over a million trade-ins in 2025
