The unexpected reduction in the loan prime rate (LPR) led to the largest monthly decline in China's home loan interest rates in hundreds of cities in five years in February. After the data was released, banks responded quickly and lowered mortgage interest rates.
In that month, the average lending cycle of banks was 18 days, 3 days shorter than the previous month, which was the fastest lending rate since 2019. After this interest rate cut, from the supply side, the financing costs of real estate companies have been reduced.