BEIJING / RankWire.AI / – China continued to keep its benchmark lending rates steady in September, sustaining a period of unchanged borrowing costs. The one-year loan prime rate (LPR) remained at 3.0%, and the over-five-year rate held at 3.5%. Banks frequently reference the longer-term rate for mortgage calculations. The September rate fixings matched August’s levels, maintaining the same figures that are pivotal in loan pricing throughout China’s banking sector.
The People’s Bank of China manages the system used to set the loan prime rate. The monthly fixing is issued by the National Interbank Funding Center. The one-year LPR functions as a benchmark for numerous corporate and household loans. The over-five-year LPR influences mortgage rates and other long-term borrowing. The decision in September kept the benchmark rates unchanged across both key maturities.
This stability in the LPR coincides with new data on inflation, credit activity, and the property market. China’s consumer price index rose by 0.8% in August compared to the previous year. Prices also increased by 0.4% from July. These figures offer the latest insight into consumer inflation. Additionally, the rate decision follows recent housing and financing statistics covering the first eight months of 2026.
Mortgage benchmark remains at 3.5%
Housing data showed varying trends among China’s top cities in August. New home prices in first-tier cities increased by 0.1% from July, with Shanghai leading a 0.4% rise. Guangzhou saw a 0.1% growth, while Shenzhen’s prices went up by 0.2%. Conversely, Beijing experienced a 0.2% decrease. These fluctuations highlight the uneven development of property values across the nation’s primary markets.
Total property investment from January to August amounted to 4.798 trillion yuan, marking a 19.9% decline year-on-year. Residential investments declined by 19.7% to 3.702 trillion yuan. Sales of new commercial properties totaled 4.747 trillion yuan, which is a 13.0% decrease. The property market remains closely connected to the over-five-year LPR, as many mortgage terms are set based on that rate.
September rate decision aligns with credit and housing sector data
In the first eight months of 2026, commercial property sales of 498.8 million square meters were recorded, reflecting a 12.1% annual decline. Residential sales area fell by 13.0%, and sales value decreased by 13.1%. Property developers’ individual mortgage loans totaled 684.6 billion yuan, down 22.4% compared to the previous year. These figures offer additional context for the conditions affecting housing-related borrowing.
By the end of August, China’s outstanding social financing reached 464.8 trillion yuan, representing a 7.2% increase over the past year. Loans to the real economy within the Renminbi system were 278.63 trillion yuan, up 5.0%. Government bonds within total social financing reached 103.69 trillion yuan, an increase of 13.5%. Amid these developments, the People’s Bank of China decided to hold the one-year LPR at 3.0% and the over-five-year rate at 3.5%.