Multiple Chinese Cities Cut Mortgage Rates to Spur Buyers Amid Economic Downturns

Experts say the move is not enough to boost market confidence

A sales representitive introduces housing models to visitors at the Shanghai Spring Real Estate Market on March 14, 2008 in Shanghai, China. China Photos/Getty Images

A number of Chinese cities recently cut interest rates on personal first suite commercial loans and housing fund loans to boost the home buying market. However, property analysts say that China’s economy is in decline, and market confidence will not be restored by cutting interest rates alone.

Starting on Oct. 14, several banks in Tianjin decreased their first suite loan rates from 4.1 percent to 3.8 percent, and Shijiazhuang, the capital of Hebei Province, lowered its interest rate from 4.1 percent to 3.9 percent.