China's central bank favors downward interest rates for individual housing loans

BEIJING -- The People's Bank of China made clear its stance of favoring downward interest rates and down payment ratio for individual housing loans at a work meeting held Tuesday.

The stance is part of the efforts to implement city-specific and differentiated housing credit policies and to better meet residents' rigid and improved housing demand, according to the meeting jointly held by the central bank and the State Administration of Foreign Exchange on the work for the second half of the year.

The central bank said it would also continue to guide commercial banks to adjust the interest rates for existing personal housing loans in a timely manner according to laws.

To support the steady and sound development of the real estate market, the regulators acknowledged the necessity to keep real estate financing stable and orderly and increase financial support for housing leasing, the renovation of urban villages and the construction of affordable housing.

The meeting emphasized the need to coordinate efforts to defuse local debt risks through financial support and to enrich the tools and means for preventing and defusing systemic risks.

The meeting also proposed to strengthen and improve foreign exchange policies to maintain the sound operation of the foreign exchange market.

Other work mentioned at the meeting includes prudently promoting research and development of the digital yuan, simplifying procedures for foreign investors to invest in the Chinese market and diversifying the types of investable assets.