China implements mortgage subsidies

China will introduce a targeted mortgage interest subsidy on Thursday, reports Caixin. The policy offers a 1-percentage-point discount for eligible first-time homebuyers.

The policy, announced Tuesday by the Ministry of Finance, the People’s Bank of China and the National Financial Regulatory Administration, will be tentatively implemented for one year.

The subsidy, a first for low-income groups from the central government, highlights Beijing’s reliance on coordinated fiscal and monetary tools as policymakers aim to release pent-up housing demand and ease the financial burden on urban workers and young graduates.