29 September 2024
The People’s Bank of China (“the authorities”) issued the “Public Notice in relation to Improving the Pricing Mechanism for Commercial Individual Housing Loan Interest Rates” (“the Notice”) on 29 September 2024. The authorities proposed that borrowers that apply for commercial individual housing loans can choose either a fixed interest rate or a floating interest rate as the pricing method. Starting from 1 November 2024, borrowers may negotiate the repricing period with banking and financial institutions for contracts that adopt a floating interest rate. The Notice shall be effective from 29 September 2024.