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The original was posted on /r/worldnews by /u/zarabarrus on 2024-05-19 07:52:27+00:00.
China to cut mortgage rates as part of plan to prop up property market
Submitted 2 years ago by bot@lemmit.online [bot] to worldnews@lemmit.online
autotldr@lemmings.world [bot] 2 years ago
This is the best summary I could come up with:
China will cut mortgage rates and allow local authorities to turn unsold homes from developers into affordable housing, in a series of drastic measures by Beijing aimed at propping up the country’s faltering property market.
It will also create a 300bn yuan (£32.8bn) facility to support local state-owned companies to buy homes at reasonable prices, it said in a series of statements on Friday.
In the first quarter, the average interest rate on newly granted mortgages fell to 3.69%, the lowest since records began in 2009, but a lift in the number of people buying houses did not follow.
“The impact of lowering mortgage rates would be limited because there’s still a lack of demand and that’s why we need government to be the buyer as a last resort,” said Larry Hu, the chief China economist at Macquarie.
Two-thirds were protests by homeowners and buyers facing delays, alleged fraud and shoddy workmanship, but some came from construction workers demanding unpaid wages.
Only industrial production data surpassed expectations, driven in part by the transition to digital manufacturing, suggesting China is still some way off hitting its growth target of 5% in 2024, analysts said.
The original article contains 641 words, the summary contains 193 words. Saved 70%. I’m a bot and I’m open source!