BEIJING / RankWire.AI / – China maintained its benchmark lending rates at their September levels, continuing a period of stable borrowing costs. The one-year loan prime rate stayed at 3.0%, and the over-five-year rate remained at 3.5%. These longer-term benchmarks are typically used by banks when setting mortgage rates. The rates fixed in September are identical to those in August, remaining central to loan pricing throughout China’s banking system.
The People’s Bank of China manages the policy framework for determining the loan prime rate. The monthly fixing is published by the National Interbank Funding Center. The one-year LPR is often referenced for various business and household loans, while the over-five-year LPR plays a key role in mortgage costs and long-term borrowing. The decision in September left both major maturities’ lending benchmarks unchanged.
This stability in the LPR coincides with new 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. Additionally, prices rose by 0.4% from July to August. These figures offer the latest insights into consumer inflation. The rate decision also aligns with recent housing and financing statistics covering the first eight months of 2026.
Mortgage Benchmark Unchanged at 3.5%
Housing data in August revealed varying trends among China’s largest cities. The price of new homes in first-tier cities increased by 0.1% from July, with Shanghai leading at a 0.4% rise. Guangzhou saw a 0.1% increase, Shenzhen advanced by 0.2%, and Beijing experienced a 0.2% decrease. These figures highlight uneven price movements across the country’s key real estate markets.
Property investment totaled 4.798 trillion yuan from January to August, representing a 19.9% decrease compared to the same period last year. Residential investment dropped 19.7% to 3.702 trillion yuan. Sales of newly built commercial properties reached 4.747 trillion yuan, a decline of 13.0%. The property sector continues to be closely linked to the over-five-year LPR, as many mortgage terms are set based on this rate.
September Rate Decision Accompanied by Credit and Market Data
Sales of newly constructed commercial properties in the first eight months of 2026 totaled 498.8 million square meters, reflecting a 12.1% decline year-over-year. Residential sales area fell by 13.0%, while the value of residential sales decreased by 13.1%. Meanwhile, individual mortgage loans to property developers amounted to 684.6 billion yuan, down 22.4% from the previous year. These figures provide additional context for current housing borrowing conditions.
By the end of August, China’s outstanding social financing reached 464.8 trillion yuan, a 7.2% increase from the previous year. Loans in the renminbi to the real economy stood at 278.63 trillion yuan, up 5.0%. Government bonds within total social financing amounted to 103.69 trillion yuan, an increase of 13.5%. Against this backdrop, the People’s Bank of China maintained the one-year LPR at 3.0% and the over-five-year rate at 3.5%.