(Economic Observation) Live Market Stabilizes Property Market, China's LPR Now "Asymmetrical Rate Cut"
China News Service, Beijing, December 20th (Reporter Pang Wuji) After 19 months, China's 1-year LPR (loan market quote interest rate) has been reduced again, while the mortgage interest rate anchored LPR interest rate for more than 5 years remains unchanged .
On the 20th, the People's Bank of China authorized the National Interbank Funding Center to publish the latest LPR data.
Among them, the 1-year LPR was 3.8%, down 5 basis points from the previous month; the 5-year or more LPR was 4.65%, unchanged for 20 consecutive months.
The 1-year LPR fell for the sixth time since the central bank initiated the reform of the loan market quote interest rate in August 2019.
Wen Bin, chief researcher of China Minsheng Bank, pointed out that lowering the LPR at the current point in time is a manifestation of financial efforts to increase support for stable growth.
At present, China's economic development is facing three pressures: demand contraction, supply shock, and expected weakening.
Wen Bin believes that this requires coordination and linkage of monetary policy and fiscal policy next year, and organic integration of cross-cyclical and counter-cyclical macro-control policies.
Recently, monetary policy has significantly increased its support for stable growth.
On the 15th of this month, China cut its reserve ratio by 0.5%. It also lowered the interest rate on refinancing loans to support agriculture and small businesses. Together with today’s reduction of 1-year LPR, Wen Bin pointed out that these policies are all conducive to helping the real economy and maintaining The economy is operating within a reasonable range.
Pan Helin, executive dean of the Institute of Digital Economy, Zhongnan University of Economics and Law, pointed out that the adjustment of LPR is an asymmetric interest rate cut.
The current market real interest rate is mainly reflected by LPR. The central bank adjusts the real interest rate, which is the LPR interest rate, by releasing liquidity and guiding currency supply and demand. Interest rates reflect certain market-oriented characteristics.
Regarding the one-year interest rate reduction, Pan Helin said that this reflects the financial support for the real economy, reduces the financing costs of small, medium and micro agricultural enterprises, and can effectively promote the development of the real economy, especially small, medium and micro enterprises.
The 5-year LPR continued to remain stable.
Wen Bin pointed out that China's financial regulatory authorities have recently begun to increase credit support in the real estate sector to meet reasonable development loan demand and support the commercial housing market to better meet the reasonable housing needs of buyers. The scale of related credit has improved significantly.
In October and November, new personal housing loans were 348.1 billion yuan (RMB, the same below) and 401.3 billion yuan, an increase of 101.3 billion yuan and 53.2 billion yuan respectively over the previous month.
Under the condition that the relevant credit demand is gradually being reasonably satisfied, the LPR of more than 5 years will remain unchanged, which will help to maintain the virtuous circle and healthy development of the real estate market.
On the basis of the anchor interest rate unchanged, Xu Xiaole, chief market analyst of Shell Research Institute, pointed out that the city bank implemented policies due to the city. In December, the 103 cities monitored by the institution continued to improve the mortgage environment, and the mortgage interest rate fell for three consecutive months. , The lending cycle was shortened to less than 2 months, and the interest rate reduction space and the shortening of the lending cycle were both expanded compared with the previous month.
The People's Bank of China and the China Banking and Insurance Regulatory Commission have also issued a notice recently to encourage banking financial institutions to provide financial support and services for the mergers and acquisitions of key real estate enterprise risk disposal projects.
Li Yujia, chief researcher of the Guangdong Provincial Housing Policy Research Center, pointed out that the 5-year LPR remains stable, sending a signal that the government will not "release water to save the property market."
The current adjustment of the real estate financial policy is still a structural move, and it will not relax in principle.
Xu Xiaole stated that under the policy guidance of “policy to promote a virtuous circle and healthy development of the real estate industry in accordance with the city” and “focus on meeting the demand for first homes and improved housing mortgages”, it is expected that the credit environment in the real estate market will further improve in the later period. There is still room for optimization in the loan cycle.
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