On May 7th, the People’s Bank of China and two other departments held a press conference on “a package of Financial policies to Support Stabilizing the market and expectations”, clearly lowering the interest rate for personal housing provident fund loans by 0.25 percentage points. The interest rate for first homes with a term of more than five years was reduced from 2.85% to 2.6%, and the interest rates for other terms were adjusted simultaneously.

Industry insiders generally believe that the current interest rate cut on provident fund loans is in line with market expectations and has better played the role of provident fund loans in benefiting the people and supporting consumption. Especially through interest rate cuts, the interest rate spread between the previous provident fund loans and commercial loans has been reduced, ensuring that the provident fund policy can exert a better effect.