For the first time this year, the People's Bank of China (PBOC) has announced a reduction in the required reserve ratio for foreign currency deposits that banks must hold.
As a result, the reserve ratio that financial institutions are required to maintain as of September 15 has been lowered from 6 percent to 4 percent. Furthermore, alongside the reduction in down payment requirements for housing purchases, banks have been instructed to decrease their existing mortgage interest rates.
Consequently, the nationwide minimum down payment requirements will be set at 20 percent for first-time homebuyers and 30 percent for those making a second home purchase. Discounts on housing loan interest rates will be subject to negotiations between banks and customers.
Both measures are scheduled to take effect on September 25. Additionally, China has made the decision to raise personal income tax deductions for childcare, parental care, and children's education expenses, aiming to stimulate the evolving patterns of household consumption in the country.