Banks in Beijing, Shanghai and Shenzhen Reduce Home Loan Rates Following LPR Cut

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Commercial banks in the cities of Beijing, Shanghai and Shenzhen have pushed through cuts to home loan rates in the immediate wake of declines in the Chinese benchmark rate that were announced on 20 January.

On 21 January multiple Chinese banks announced reductions to their home loan rates of around 5 basis points, according to a report from Caishelian.

In Beijing rates for first home loans have fallen to 5.15% at many banks, while the rate for second home loans has fallen to 5.65%.

In the Shanghai area first home loan rates fell to 4.95% at multiple banks, while for second home loan rates in general stand at around 5.65%.

Shenzhen has seen first home loan rates fall to around 4.9%, while second home loan rates are at 5.2%.

The cuts come in the immediate wake of declines in China’s benchmark loan prime rate (LPR) which was released on 20 January.

The January LPR’s were 3.7% for the 1-year LPR, for a decline of 10 basis points compared to the previous month, and 4.60% for the 5-year LPR, for a decline of 5 basis points.