China’s four largest banks dropped mortgage rates in the southern city of Guangzhou by 20 basis points, a move aimed at bolstering the struggling property sector, reports Reuters. Guangzhou, the capital of Guangdong province, is home to the country’s most indebted property developer China Evergrande Group.
The move follows decisions by some banks to require smaller downpayments in some cities last week. Media have also reported this month that developers will also gain easier access to presale proceeds from residential projects.
Cutting mortgage rates for first-time home buyers to 80 basis points over the country’s benchmark loan prime rate (LPR) from 100 basis points were the Guangzhou branches of the Bank of China, the Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China, according to two people familiar with the matter.