China rolls out new measures to bolster its property sector and economy

BEIJING — On Tuesday, China unveiled a series of new initiatives aimed at revitalizing its struggling property sector and overall economy as pressures mount ahead of a critical year-end target for achieving the government's economic growth objective. Among the most significant measures announced are targeted bank lending incentives and additional subsidies to alleviate mortgage interest payments for homebuyers.

The People's Bank of China, the nation's central banking authority, pledged to reduce the interest rate on its "pledged supplementary lending" facility, or PSL, by a quarter of a percentage point, effectively lowering the one-year rate to 1.5%. This move is intended to provide more attractive financing to major state policy banks supporting state and public projects, thereby incentivizing banks to lend more effectively and better align with national strategies.

Furthermore, the central bank announced an increase in the quota for lending to support technological innovation by 200 billion yuan ($30 billion), raising the total available amount to 1.4 trillion yuan. The Ministry of Finance also outlined additional steps aimed at addressing the property market's challenges and supporting broader economic growth objectives.