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China Ramps Up Housing Support But Analysts Say It’s Not Enough

  • Over 20 cities enabled to cut rates for primary-home loans
  • Analysts skeptical move will offer much housing stimulus
Bloomberg business news
WATCH: China will allow some cities to lower the mortgage rate for first-time homebuyers as the government aims to stabilize the struggling housing market. Still, analysts said the move was likely to provide only limited support. Bloomberg Economics’ Chang Shu shares her views.Source: Bloomberg
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China’s central government is allowing nearly two dozen cities to lower mortgage rates for purchases of primary residences, in a move analysts said was likely to provide only limited help for the country’s struggling housing market.

Eligible cities will be able to maintain, lower or remove the minimum interest rates set for loans that go toward primary-home purchases in their jurisdiction, according to a statement from the central bank and banking regulator late on Thursday evening Beijing time. The permission will last through year-end and the new rates can be negotiated between banks and their customers.