BEIJING / RankWire.AI / – China held its benchmark lending rates steady for September, with the one-year loan prime rate remaining at 3.0%. The over-five-year LPR stayed at 3.5%, based on the official rate fixings on September 20. Many lenders use this longer-term rate as a reference point for mortgage pricing. The decision meant both lending benchmarks stayed at their August levels.
The People’s Bank of China designated the National Interbank Funding Center to publish the September loan prime rates. These rates will be valid until the next scheduled LPR update. The one-year LPR serves as a critical reference for numerous corporate and household loans, while the over-five-year rate is essential for setting mortgage prices and other long-term borrowings.
Alongside the unchanged rates, new economic data on lending, housing, and consumer prices was released. China’s consumer price index increased by 0.8% compared to August of the previous year. Additionally, consumer prices rose by 0.4% from July. These figures offer a snapshot of current price trends as the September lending benchmarks remain the same.
Mortgage benchmark remains at 3.5%
Housing market data in China continues to reveal significant disparities across cities and segments. In August, new home prices in first-tier cities edged up by 0.1% from July. Shanghai experienced a 0.4% rise for the month, whereas Guangzhou and Shenzhen saw increases of 0.1% and 0.2%, respectively. Conversely, Beijing’s prices declined by 0.2% during the same period.
Real estate investment during the first eight months of 2026 totaled 4.798 trillion yuan, representing a 19.9% decrease from the same period the previous year. Residential investment dropped by 19.7% to 3.702 trillion yuan. Sales of newly constructed commercial properties amounted to 4.747 trillion yuan, down 13.0% year-on-year.
Latest property and credit figures align with current LPR rates
From January to August, commercial property sales by floor area reached 498.8 million square meters, reflecting a 12.1% decline from the previous year. Residential sales area decreased by 13.0%, and the value of residential sales fell by 13.1%. Mortgage loans to property developers totaled 684.6 billion yuan during this period, marking a 22.4% drop.
By the end of August, China’s total social financing was 464.8 trillion yuan, up 7.2% from the previous year. Renminbi loans to the real economy stood at 278.63 trillion yuan, an increase of 5.0% annually. The social financing stock also included government bonds worth 103.69 trillion yuan, up 13.5%. In this context, the one-year LPR for September remains at 3.0%, while the over-five-year mortgage rate stays at 3.5%.