The Ministry of Finance will provide an annual 1 percentage point mortgage subsidy starting Oct. 1 for first-time homebuyers purchasing units up to 120 square meters and priced below 1.5 million yuan. The subsidy applies to loans up to 1 million yuan for up to five years. Despite the measures, the Hang Seng Mainland Properties Index fell 1.3% and the CSI 300 Real Estate Index dropped 8% in morning trade, as investors judged the targeted stimulus insufficient to stabilize the property market.
Tuesday, October 20, 2026
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PBOC Cuts PSL Rate to 1.5% and Expands Credit Quotas
Global Markets20 days ago
The People's Bank of China expanded financing facilities for technology firms and agricultural borrowers by 700 billion yuan to incentivize equipment upgrades and rural credit. Relending quotas for tech innovation rose to 1.4 trillion yuan from 1.2 trillion yuan with the support ratio increased to 100% from 60%, while agriculture and small business quotas rose to 4.85 trillion yuan. The PBOC also lowered the one year Pledged Supplementary Lending (PSL) rate to 1.5% from 1.75% and expanded PSL eligibility to cover the construction of computing and power grids, water and logistics networks, and urban underground piping.
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