Jul 06, 2012
- China cut interest rates for the 2nd time in a month yesterday and allowed banks to set lower lending rates to bolster economic growth. Economists said the cut may bring more liquidity to the market, but that the authorities would need to take more measures to control prices in the property market. From today, the benchmark 1 year deposit rate will be lowered by 0.25 percentage points to 3%, the People's Bank of China said in a statement. Banks have been allowed to raise deposit rates by as much as 10% above the benchmark after China cut interest rates in June for the 1st time since 2008. The 1 year lending rate will fall by 0.31 percentage points to 6%, and banks are allowed to offer a 30% discount, compared to the previous 20%. (Shanghai Daily)
- Shanghai’s existing property sales soared to the highest in 17 months in June as buying sentiment among home seekers improved. The purchases of previously-owned properties, most being residential developments, jumped 20.3% from May to 19,300 units, Century 21 China Real Estate said in a report. The existing properties were sold at an average RMB15,700/sq m, down 3.2% from May. (Shanghai Daily)
- Shanghai’s existing housing index rose in June for the 1st time in 9 months as sentiment recovered. The index, which tracks price variations, rose 4 points, or 0.16%, from May to 2,579, the Shanghai Existing Index Office said. Before June, the index was flat in May after falling for 7 straight months. (Shanghai Daily)
