Chinese Banks Increase Mortgage Rates as Property Prices Decline

At least two Chinese banks increased interest rates on mortgages for first homes, after property prices posted their first monthly decline in a year.

China Construction Bank Corp., the nation’s second-biggest by market value, increased rates in Beijing to 1.05 times the central bank’s benchmark lending rate, a press officer said today, declining to be identified in line with bank policy. China Everbright Co. raised its first-home mortgage rate in Shanghai to the same level, a press officer said, confirming a report in Economic Information Daily. The benchmark for loans of more than five years is 7.05 percent.