Yan Meizhi, Research Director of Greater China Financial Industry at UBS Group, responded at a seminar on September 2 that relevant departments are considering further lowering the existing housing loan interest rates and allowing the conversion of existing housing loans into mortgages, stating that the policy may be implemented within a few months. Yan Meizhi stated that according to UBS Group's calculations, the current average existing mortgage rate is around 4.1%, the average for new loans is 3.3%, and even some cities have reached 2.9%. In terms of adjustment range, there is a 100 basis points adjustment space for existing mortgage rates. If bank deposit rates are not lowered, it would result in an 11 basis points impact on bank interest margins. Subsequently, if there is a need to adjust existing mortgage rates, deposit rates would need to be lowered to offset this, to a potential extent of around 28 basis points, although generally not reaching that level. If the relaxation of mortgage switching can be further expanded, other banks in the market may also engage, leading to a significantly competitive environment and broader impact. Therefore, for the banking industry, now might not be the most optimal time to pursue a comprehensive and unrestricted approach to mortgage conversion.