# China economic and real estate stimulus measures

> Live situation record from CLSTR: https://clstr.news/situations/china-economic-and-real-estate-stimulus-measures
> Updated: 2026-09-29T11:34:47.000Z. Sources: 14. Developments: 2.

China initially maintained its benchmark lending rates through September, with the one-year Loan Prime Rate (LPR) at 3.0% and the five-year plus LPR at 3.5%. This period of stability followed varied real estate trends, including slight price increases in Shanghai, Shenzhen, and Guangzhou, alongside a decrease in Beijing.

By late September, the government shifted toward active stimulus measures. A new mortgage interest subsidy program, jointly issued by the Ministry of Finance, the People’s Bank of China, and the National Financial Regulatory Administration, is scheduled to begin on October 1, 2026, for an initial duration of one year. To qualify, residents must use new commercial individual housing loans to purchase their first home. Eligible properties must have a construction area of no more than 120 square meters and a total price not exceeding 1.5 million yuan. Eligible borrowers can receive an annual interest subsidy of 1 percentage point on loan principals up to 1 million yuan for a maximum of five years, which is expected to reduce total interest costs for qualifying households by up to 50,000 yuan.

Concurrently, the People’s Bank of China has implemented broader monetary stimulus. This includes reducing the Pledged Supplementary Lending (PSL) rate by 0.25 percentage points, from 1.75% to 1.5%, and expanding its scope to include water, power, and computing networks. The central bank has also increased re-lending quotas, raising the quota for technological innovation and technical transformation by 200 billion yuan to a total of 1.4 trillion yuan, while increasing support for agriculture and small businesses by 500 billion yuan.

## Claims

- The mortgage interest subsidy policy will take effect on October 1, 2026. (corroborated by 8 sources)
- The subsidy applies to first-time homebuyers purchasing homes with an area not exceeding 120 square meters and a total price not exceeding 1.5 million yuan. (corroborated by 8 sources)
- The maximum loan amount eligible for the 1% annual interest subsidy is 1 million yuan. (corroborated by 8 sources)
- The interest subsidy can be applied for a maximum period of 5 years. (corroborated by 8 sources)
- The subsidy applies to first-time homebuyers using new commercial individual housing loans. (corroborated by 8 sources)
- The People's Bank of China reduced the Pledged Supplementary Lending (PSL) rate by 0.25 percentage points, from 1.75% to 1.5%. (corroborated by 4 sources)
- The People's Bank of China increased the relending quota for technological innovation and technical transformation by 200 billion yuan to a total of 1.4 trillion yuan. (corroborated by 4 sources)

## Timeline

### 2026-09-29: China announces mortgage interest subsidy for first-time homebuyers

China will launch a mortgage interest subsidy for first-time homebuyers on October 1, 2026, targeting homes under 120sqm and 1.5M yuan. The central bank also cut PSL rates and expanded tech relending.

12 sources. https://clstr.news/cluster/china-announces-mortgage-subsidies-and-psl-rate-cut

### 2026-09-21: China maintains benchmark LPR and mortgage rates

China has held its one-year LPR at 3.0% and its five-year LPR at 3.5% for September, maintaining a cautious monetary stance amid mixed economic and real estate data.

2 sources. https://clstr.news/cluster/china-maintains-benchmark-lpr-and-mortgage-rates

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Cite as: China economic and real estate stimulus measures. CLSTR, https://clstr.news/situations/china-economic-and-real-estate-stimulus-measures