China maintains benchmark LPR and mortgage rates

China has maintained its benchmark lending rates through September, signaling a cautious approach to monetary policy. The one-year Loan Prime Rate (LPR) remains at 3.0%, while the five-year plus LPR, which serves as a primary benchmark for mortgage pricing, remains steady at 3.5%.

This decision follows recent economic data, including a 0.8% year-on-year increase in the consumer price index for August. The real estate market continues to show varied trends across major cities. In first-tier cities, new home prices rose by 0.1% in August compared to July, with Shanghai recording a 0.4% increase, Shenzhen 0.2%, and Guangzhou 0.1%. Conversely, Beijing saw a 0.2% decrease during the same period.