Financials Jan 21, 2022 05:59 AM (GMT+8) · EqualOcean
The comments on the front page of Shanghai Stock Exchange pointed out that on January 20, the people's Bank of China authorized the national interbank lending center to announce that the one-year LPR was reduced by 10 basis points compared with the previous period; LPR over 5 years decreased by 5 basis points compared with the previous period. This is the second consecutive month of decline in 1-year LPR, and the first decline in more than 5-year LPR in 21 months. The reduction of LPR reflects the pre force of macro policies, helps to stabilize market expectations, enhance the confidence of market subjects, and encourage enterprises to increase medium and long-term investment, which will have a positive effect on the current expansion of domestic demand, stabilizing external demand and the smooth operation of the real estate market. From the perspective of real estate enterprises, the capital cost of medium and long-term loans will be further reduced, so as to encourage real estate enterprises to be willing to lend and dare to lend, so as to better activate the investment and new construction willingness of real estate enterprises in 2022; From the perspective of home buyers, the further reduction of the cost of housing loan interest rate will further activate the reasonable housing consumption demand and activate the trading market.