BEIJING / RankWire.AI / – China maintained its benchmark lending rates in September, with the one-year loan prime rate remaining at 3.0%. The over-five-year LPR also stayed at 3.5%, based on the official fixing on September 20. Many financial institutions reference this longer-term rate when setting mortgage prices. This decision resulted in both lending benchmarks holding steady at the same levels as in August.
The People’s Bank of China authorized the National Interbank Funding Center to release the September loan prime rates. These figures remain valid until the next scheduled LPR announcement. The one-year LPR is a critical benchmark for numerous corporate and household loans, while the over-five-year rate plays a significant role in mortgage and long-term borrowing pricing.
The decision to keep rates unchanged coincides with recent economic indicators covering lending activity, housing prices, and consumer inflation. In August, China’s consumer price index increased by 0.8% compared to the same month last year, and prices rose by 0.4% from July. These statistics offer insight into current inflation trends amid stable lending rates for September.
Mortgage benchmark remains at 3.5%
Housing market data across Chinese cities and segments continue to display notable disparities. In August, new home prices in first-tier cities increased by 0.1% compared to July. Shanghai saw a 0.4% rise, whereas Guangzhou and Shenzhen experienced gains of 0.1% and 0.2% respectively. Conversely, Beijing experienced a 0.2% decrease during the same period.
Real estate investment totaled 4.798 trillion yuan in the first eight months of 2026, reflecting a 19.9% drop compared to the same timeframe last year. Residential investments declined by 19.7%, reaching 3.702 trillion yuan. Sales of newly constructed commercial properties amounted to 4.747 trillion yuan, which is a 13.0% decrease on an annual basis.
Latest property and lending figures shape current LPR levels
From January to August, the area of newly sold commercial properties by floor space reached 498.8 million square meters, down 12.1% compared to the previous year. Residential sales area also fell by 13.0%, while sales value decreased by 13.1%. During this period, individual mortgage loans extended to property developers totaled 684.6 billion yuan, marking a 22.4% decline.
As of August, China’s total social financing outstanding was 464.8 trillion yuan, an increase of 7.2% year-on-year. Loans denominated in Renminbi to the real economy stood at 278.63 trillion yuan, up 5.0% annually. Government bonds comprised 103.69 trillion yuan of the social financing total, reflecting a 13.5% rise. Against this economic backdrop, the September one-year LPR remains at 3.0%, with the over-five-year mortgage rate steady at 3.5%.
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