China cuts lending rates as property market struggles

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The central bank of China has cut its mortgage lending rate.

The five-year loan prime rate was lowered by 1.5 percentage points, making it the biggest cut on record.

Some building projects have stopped because of the property crisis in the second largest economy.

Businesses are being affected by the country's strict zero- Covid policies.

The PBOC lowered the five-year rate to 4% on Monday, which will bring down the cost of home mortgage repayments.

The one-year loan prime rate was lowered from 4.3% to 3.65%.

The moves are part of a larger effort to shore up the real estate industry.

She said in a note on Monday that some local governments have started to lend to property developers to finish uncompleted homes.

She said that the two measures should make existing home mortgage borrowers less concerned.

The value of the sector in China is estimated to have fallen by more than a trillion dollars.

The number of home sales in China fell for 11 months in a row. In the late 1990s, China created a private property market.

Concerns over their finances have caused several Chinese developers to stop building homes that had already been sold.

Hundreds of home buyers have threatened to stop paying their mortgage if the work isn't done soon.

The Chinese government has indicated that the country may not meet its economic growth target.

The official growth target was not mentioned by the Politburo after it met in July. The leaders would strive to achieve the best results.

The premier of China said last week that the government will take more steps to boost consumption.

The indicators for consumption and output slowed.