Chinese media outlet Global Times with a summary of cuts that came into effect today:
- many Chinese banks, including Industrial and Commercial Bank of China and Agricultural Bank of China, have cut some of their existing mortgage rates
- Mortgage rates that currently exceed loan prime rate (LPR)-30 basis points (BP) will be reduced uniformly to LPR-30BP
- After the adjustment, the average reduction in mortgage rates for existing home loans is around 0.5 percentage points.
- The move is expected to benefit 50 million households, or a population of 150 million, and reduce the total interest expenses for households by approximately 150 billion yuan ($21.05 billion) per year on average.
That is not 'flood like' stimulus by any means - and we've been told over and over that the prospect of that again is basically zero. But, these cuts, for so many households, are significant.
