BEIJING / RankWire.AI / – China kept its benchmark lending rates unchanged in September, holding the one-year loan prime rate at 3.0%. The over-five-year LPR stayed at 3.5%, according to the official September 20 fixing. Many lenders reference this longer-term rate when setting mortgage prices. This decision resulted in both lending benchmarks remaining at August levels, with no change from previous months.
As of September, the People’s Bank of China authorized the National Interbank Funding Center to publish the loan prime rates. These new figures are valid until the next scheduled LPR release. The one-year LPR serves as a key benchmark for numerous corporate and household loans, while the over-five-year rate is pivotal in determining mortgage and long-term borrowing costs.
In the context of recent economic data covering lending, housing, and consumer prices, China’s lending benchmarks remained steady. In August, the consumer price index increased by 0.8% year-on-year, with prices also rising 0.4% compared to July. These figures offer a snapshot of current inflation trends, coinciding with unchanged September lending rates.
Mortgage benchmark maintains at 3.5%
Data on China’s housing market reveal ongoing disparities across cities and market segments. In August, new home prices in first-tier cities rose slightly by 0.1% compared to July. Shanghai experienced a 0.4% increase, while Guangzhou and Shenzhen saw gains of 0.1% and 0.2%, respectively. Conversely, Beijing experienced a 0.2% decline during the same period.
During the first eight months of 2026, real estate investment totaled 4.798 trillion yuan, representing a 19.9% decrease compared to the same span last year. Residential investments fell 19.7% to 3.702 trillion yuan, and sales of newly built commercial properties reached 4.747 trillion yuan, down 13.0% year-on-year.
Latest property and credit figures align with current LPR rates
From January through August, commercial property sales by floor area totaled 498.8 million square meters, declining by 12.1% compared to the same period last year. Residential sales area decreased by 13.0%, and the value of residential property transactions fell by 13.1%. During this period, individual mortgage loans to property developers amounted to 684.6 billion yuan, reflecting a 22.4% drop.
By the end of August, China’s total social financing reached 464.8 trillion yuan, showing a 7.2% increase year-on-year. Loans in renminbi to the real economy stood at 278.63 trillion yuan, rising 5.0% annually. Additionally, government bonds accounted for 103.69 trillion yuan within the social financing total, up 13.5%. Against this economic backdrop, the one-year LPR remains at 3.0%, with the over-five-year mortgage rate steady at 3.5%.