On September 29, the People's Bank of China and the China Banking and Insurance Regulatory Commission issued a notice deciding to adjust the differentiated housing credit policy in stages.

The introduction of this policy measure will help support urban governments to make full use of the policy toolbox in "city-specific policies" and promote the stable and healthy development of the real estate market.

The notice is as follows:

1. For cities where the sales prices of newly built commercial residential buildings have continued to decline both month-on-month and year-on-year from June to August 2022, the first-unit housing sales price will be relaxed in stages before the end of 2022. The lower limit of housing commercial personal housing loan interest rate. The lower limit of the interest rate policy for commercial personal housing loans for second homes shall be implemented in accordance with the current regulations.

2. In accordance with the principle of "city-specific policies", city governments that meet the above conditions can independently decide to maintain, reduce or cancel the local first-home commercial individual housing in stages according to changes in the local real estate market situation and regulatory requirements. For the lower limit of housing loan interest rates, agencies dispatched by the People's Bank of China and the China Banking and Insurance Regulatory Commission will guide the implementation of the provincial market interest rate pricing self-discipline mechanism.