BEIJING / RankWire.AI / – China has kept its benchmark lending rates unchanged for September, continuing its period of stable borrowing costs. The one-year loan prime rate remains at 3.0%, while the over-five-year rate remains at 3.5%. These longer-term benchmark rates are typically used by banks when setting mortgage prices. The rates fixed in September are identical to those in August, maintaining the same levels across China’s banking system.
The People’s Bank of China administers the framework that determines the loan prime rate, with the monthly fixings published by the National Interbank Funding Center. The one-year LPR acts as a reference for many business and consumer loans, whereas the over-five-year LPR influences mortgage and long-term borrowing rates. In September, the decision was made to keep these benchmark rates unchanged for both major maturities.
This stability in the lending rates coincides with recent data on inflation, credit activity, and the property sector. China’s consumer price index increased by 0.8% in August compared to the same month last year, and it also rose by 0.4% from July, providing the latest insight into consumer inflation. The rate decision follows new housing market and financing figures covering the first eight months of 2026.
Mortgage benchmark remains at 3.5%
In August, housing market data showed varied trends across China’s largest cities. New home prices in first-tier cities increased by 0.1% from July, with Shanghai experiencing a 0.4% rise. Guangzhou prices edged up by 0.1%, while Shenzhen grew by 0.2%. Conversely, Beijing saw a 0.2% decline during the same period. These figures reflect inconsistent price movements among the country’s top property markets.
Property investment totaled 4.798 trillion yuan from January to August, marking a 19.9% decrease year-over-year. Residential investment fell by 19.7%, reaching 3.702 trillion yuan. Sales of newly constructed commercial properties amounted to 4.747 trillion yuan, down 13.0%. The property sector remains closely tied to the over-five-year LPR, as many mortgage terms are based on this rate.
Indicators on credit and property market influence the September rate decision
Sales of newly built commercial properties covered 498.8 million square meters during the first eight months of 2026, representing a 12.1% decrease compared to the previous year. Residential sales area declined by 13.0%, with sales value down by 13.1%. Property developers’ individual mortgage loans totaled 684.6 billion yuan, which is 22.4% lower than the same period last year. These figures provide further context for housing-related lending conditions.
By the end of August, China’s outstanding social financing reached 464.8 trillion yuan, increasing by 7.2% from a year earlier. Loans in Renminbi to the real economy stood at 278.63 trillion yuan, a 5.0% rise. Government bonds within total social financing amounted to 103.69 trillion yuan, up 13.5%. In this context, the People’s Bank of China decided to keep the one-year LPR at 3.0% and the over-five-year rate at 3.5%.