Saturday, 23 September 2023 08:50 GMT

China reduces chief mortgage rate making property stocks surge

(MENAFN) Chinese real estate developer’s stocks have soared in Hong Kong as China's central bank reduced a key mortgage ratio unprecedentedly in about two years.

The verdict comes as worries increase regarding a slump in the second biggest economy in the world amidst Omicron high infections.

Meanwhile, main Chinese real estate companies, like crisis-affected Evergrande, are scrambling to fulfill debt repayments. On Monday, China shocked markets by reducing rates on medium-term loans for the first time since April of two years ago.

On Thursday, the People's Bank of China (PBOC) reduced its five-year loan prime ratio, which is the reference rate employed for mortgages, from 4.65 percent to 4.6 percent.


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