China cuts PSL to 1.5% and unveils mortgage subsidy
Business
China just dropped a bunch of new policies to give its economy (and especially the property market) a much-needed lift.
The People's Bank of China lowered its pledged supplementary lending (PSL) rate by 0.25% point, bringing the one-year rate to 1.5%.
Plus, starting October 2026, first-time homebuyers can snag a 1% annual mortgage subsidy for up to five years if they buy homes up to 120 square meters and priced up to 1.5 million yuan.
China targets demand in smaller cities
These steps aim to spark demand in smaller cities and keep the country on track for its growth goal of 4.5% to 5% by 2026.
After some recent slowdown (GDP grew just 4.3% year-over-year last quarter), China's hoping these changes will help speed up recovery, especially in tech and real estate.