China rate cut shows lack of options for boosting economy

Latest monetary easing move tries to spark recovery in housing market

20240220N china unfinished condos KYODO

Unfinished apartment towers in Shanghai. China's real estate developers have struggled against a cash crunch. © Kyodo

IORI KAWATE, Nikkei staff writer

BEIJING -- China's move to slash borrowing rates for homebuyers underscores how authorities are trying to prop up a weak housing market with few tools at their disposal.

The People's Bank of China lowered the five-year loan prime rate, a mortgage benchmark, by 25 basis points on Tuesday to 3.95% from 4.2%. Shanghai-listed stocks rose in response to the move.

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