The Shanghai headquarters of the People's Bank of China, branches in various provinces, autonomous regions, municipalities directly under the Central Government and planned separate municipalities; various countries include commercial banks, China Postal Savings Bank, and various joint stock commercial banks:

In order to implement the decisions and arrangements of the Party Central Committee and the State Council, adapt to the new changes in the supply and demand relationship in China's real estate market, the people's new expectations for high-quality housing, and promote the steady and healthy development of the real estate market, the following notice is issued on matters relating to the adjustment of interest rate policies for commercial personal housing loans:

1. Abolish the lower interest rate policy for commercial personal housing loans for the first home and two housing units at the national level.

2. In accordance with city-specific policy principles, each provincial branch of the People's Bank of China guides the self-regulatory mechanism for interest rate pricing in each provincial market. According to the real estate market situation in each city within its jurisdiction and the regulatory requirements of the local government, it independently determines whether to set the lower interest rate limit and lower interest rate level (if any) for commercial personal housing loans in each city within its jurisdiction.

3. Banking financial institutions shall reasonably determine the specific interest rate level for each loan based on the lower interest rate limit (if any) determined by each provincial market interest rate pricing self-regulatory mechanism, taking into account factors such as the operating conditions of the institution and customer risk conditions.

If the previous relevant regulations are inconsistent with this Notice, this Notice shall prevail.

People's Bank of China

May 17, 2024