The People’s Bank of China (PBOC) has decided to keep its loan prime rates steady at 3.45% for the one-year rate and 3.95% for the five-year rate. This decision was in line with market expectations for the May fixing. The one-year rate is the benchmark for most corporate and household loans, while the five-year rate is used as a reference for property mortgages.
Last week, the People’s Bank of China (PBOC) announced that it would keep the medium-term lending rate at 2.5% as part of its efforts to stabilize the yuan. This move is aimed at maintaining stability in the country’s currency.
In addition, the Chinese government has promised to provide further stimulus to the property sector by relaxing purchase rules and encouraging local governments to purchase unsold houses from developers and convert them into affordable housing. This measure is expected to support the real estate market and provide more affordable housing options for Chinese citizens.
Investors interested in gaining exposure to the Chinese market may consider investing in exchange-traded funds (ETFs) such as (FXI), (KWEB), (CQQQ), (MCHI), (ASHR), (YINN), (TDF), (CHIQ), (GXC), (EWH), (KBA), (YANG), (CXSE), (CAF), (CWEB), (PGJ), (KURE), and (CHIX).
The currency exchange rate between the Chinese yuan (CNY) and the US dollar (USD) is denoted as (CNY:USD).