May 16 news, internal housing stocks opened high in the morning, as of press time$Xuhui Holdings Group (00884.HK) $Rose 7.72% to HK $3.35$Country Garden Holdings (02007.HK) $Rose 7.47% to HK $4.75$China Overseas Land & Investment (00688.HK) $Rose 4.09% to HK $24.15$China Vanke (02202.HK) $It rose 4.52% to HK $18.50.

On the face of the news, the central bank and the Bank of China and the Insurance Regulatory Commission jointly issued a paper on May 15, saying that for families who buy ordinary self-housing with loans, the lower limit of the interest rate for commercial individual housing loans for the first set of housing will be adjusted to no less than 20 basis points less than the quoted interest rate for the loan market for the corresponding term, and the lower limit of the interest rate policy for commercial personal housing loans for second homes shall be implemented in accordance with the current regulations. If you do not take into account the current regional differentiation requirements, the cut means that the subsequent local first-home mortgage interest rates can be as low as 4.4%.

China International Capital Corporation research newspaper pointed out that this reduction is the lower limit of the first home loan interest rate rather than the terminal real interest rate. In April, the mainstream interest rate of the first home loan in Baicheng was 5.17%. In the past six months, it has been reduced by 51BP. At present, it is still higher than the 5-year LPR, and the adjusted lower interest rate is 77BP. We expect that the terminal mortgage interest rates will continue to decline in the future, and we should closely observe the downward range and speed.