Xincheng Holdings recently restarted the issuance of US dollar bonds, and the coupon rate dropped by 1 to 2 percentage points compared with last year. Behind this detail is the fifth interest rate cut by the Federal Reserve since September 2024. On October 29, the Federal Reserve once again lowered the federal funds rate by 25 basis points to a range of 3.75% to 4.00%.

When news like this comes, many people are asking: Can this wave of global monetary easing “rescue” China’s property market from its collapse?

The most direct impact of the Fed’s interest rate cut is to further open up the space for China’s monetary policy. The long-standing pressure on interest rates between China and the United States has been significantly alleviated. The central bank does not need to excessively consume foreign exchange reserves to stabilize the exchange rate. This has opened an operational window for domestic RRR and interest rate cuts.

Some analysts believe that as the Federal Reserve cuts interest rates again, the possibility of domestic follow-up policy adjustments on November 20 has increased significantly. However, the market generally expects that LPR of 5 years and above may be reduced by 10 to 15 basis points in the next 3 to 6 months. However, this is not a flood, and the policy focus is more focused on optimizing the credit structure.

For real estate companies, the financing environment presents distinct structural characteristics. From the perspective of overseas financing, the decline in the cost of US dollar debt has indeed brought breathing space to high-quality real estate companies. For a company like Powerlong Real Estate, if the interest rate on existing U.S. dollar bonds is reduced by 0.5 percentage points, it can save about US$5 million in interest expenses every year.

This improvement directly alleviates the overseas debt repayment pressure of leading real estate companies and injects liquidity into project delivery and new development. However, the financing difficulties of most entities in the industry have not been fundamentally reversed.