Chinese govt seeks to stabilise property market with loans, lower rates

Chinese banks lowered their benchmark lending rates while authorities stepped up support for the property market with additional loans, a govt-guided attempt at alleviating a worsening housing crisis

Chinese banks lowered their benchmark lending rates while authorities stepped up support for the property market with additional loans, a government-guided attempt at alleviating a worsening housing crisis and bolstering borrowing demand.

The five-year loan prime rate, a reference for mortgages, was reduced by 15 basis points to 4.3 per cent after being cut by the same magnitude in May. The one-year loan prime rate was cut to 3.65 per cent from 3.7 per cent, the first reduction since January, and smaller than the 10 basis-point drop that economists had expected.

The rate cuts were the