BEIJING / RankWire.AI / – China kept its benchmark lending rates unchanged 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 September 20 fixings. Many lenders consider the longer-term rate as a reference for setting mortgage prices. This decision maintained both lending benchmarks at the same levels seen in August.
The People’s Bank of China authorized the National Interbank Funding Center to announce the September loan prime rates. These figures will stay valid until the next scheduled LPR update. The one-year LPR is a key reference for many corporate and household loans in China, while the over-five-year rate is central to mortgage and long-term borrowing pricing.
Amidst the stable rates, new economic data covering lending, housing, and consumer prices has been released. August saw China’s consumer price index increase by 0.8% year-on-year. Additionally, consumer prices grew by 0.4% compared to July. These figures offer a snapshot of current price trends, even as the September lending benchmarks remain unchanged.
Mortgage rate remains steady at 3.5%
Housing market data reveal persistent disparities across different cities and segments. In August, new home prices in first-tier cities increased by 0.1% from July. Shanghai experienced a 0.4% rise, while Guangzhou and Shenzhen saw gains of 0.1% and 0.2%, respectively. Meanwhile, Beijing experienced a 0.2% decline during the same period.
Real estate investment during the first eight months of 2026 totaled 4.798 trillion yuan, reflecting a 19.9% decrease compared to the same period in the previous year. Residential investment fell by 19.7%, reaching 3.702 trillion yuan. Sales of newly built commercial properties amounted to 4.747 trillion yuan, marking a 13.0% decline year-over-year.
Latest property and credit figures reinforce current LPR levels
Between January and August, new commercial property sales by floor area reached 498.8 million square meters, down 12.1% from the previous year. Residential sales area declined by 13.0%, with sales value dropping by 13.1%. Property developers’ individual mortgage loans during this period totaled 684.6 billion yuan, which is a 22.4% decrease.
At the end of August, China’s outstanding social financing stood at 464.8 trillion yuan, representing a 7.2% increase from the previous year. Renminbi loans to the real economy amounted to 278.63 trillion yuan, up 5.0% annually. Government bonds within the social financing stock totaled 103.69 trillion yuan, up 13.5%. Given this context, the September one-year LPR remains at 3.0%, and the over-five-year mortgage-linked rate stays at 3.5%.