China unveils mortgage subsidies and targeted funding to boost demand
China's central government announced interest subsidies for eligible new commercial mortgages of up to 1 million yuan per household, cutting annual interest by one percentage point for up to five years and applying to first homes priced at no more than 1.5 million yuan and 120 square meters. At the same time the central bank lowered the pledged supplemental lending rate and broadened its coverage to six infrastructure networks, while raising lending quotas for technological innovation and for agriculture and small businesses. The measures seek to ease household repayment burdens, spur homebuying and direct more credit into investment as consumption and investment data weaken.
Central government will subsidize mortgages by one percentage point.
Context
Recent official data show weak retail sales and contracting fixed-asset investment. A…
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