BEIJING / RankWire.AI / – China decided to keep 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%, according to the official September 20 fixing. Many lenders reference this longer-term rate when setting mortgage prices. This decision resulted in both lending benchmarks staying at the same levels as in August.
The People’s Bank of China authorized the National Interbank Funding Center to publish the September loan prime rates. These new figures will be valid until the next scheduled LPR release. The one-year LPR is a crucial reference for many corporate and household loans, while the over-five-year rate is essential for mortgage and long-term borrowing pricing.
Alongside these steady rates, recent economic data related to lending, housing, and consumer prices was released. In August, China’s consumer price index increased by 0.8% compared to the previous year. Additionally, consumer prices grew by 0.4% from July. These figures offer a snapshot of current price trends, with the September lending benchmarks remaining unchanged.
Mortgage benchmark remains at 3.5%
Data on China’s housing market continue to reveal significant variation across cities and segments. In August, new home prices in first-tier cities saw a 0.1% rise from July. Specifically, Shanghai experienced a 0.4% monthly increase, while Guangzhou and Shenzhen gained 0.1% and 0.2%, respectively. Conversely, Beijing saw a 0.2% decline during that month.
During the first eight months of 2026, real estate investment reached 4.798 trillion yuan, reflecting a 19.9% decrease compared to the same period last year. Residential investment fell by 19.7%, totaling 3.702 trillion yuan. Meanwhile, sales of newly constructed commercial properties amounted to 4.747 trillion yuan, a 13.0% decline year on year.
Latest property and credit figures contextualize current LPR settings
Between January and August, new commercial property sales by floor area totaled 498.8 million square meters, representing a 12.1% drop from the previous year. Residential sales area declined by 13.0%, and the value of residential sales decreased by 13.1%. Property developers’ individual mortgage loans amounted to 684.6 billion yuan during this period, a reduction of 22.4%.
By the end of August, China’s outstanding social financing stood at 464.8 trillion yuan, marking a 7.2% increase compared to the previous year. Loans in Renminbi directed to the real economy reached 278.63 trillion yuan, up 5.0% annually. Government bonds totaled 103.69 trillion yuan within the social financing total, an increase of 13.5%. Given this context, September’s one-year LPR remains at 3.0%, with the over-five-year mortgage rate steady at 3.5%.