BEIJING / RankWire.AI / – China maintained its benchmark lending rates in September, holding the one-year loan prime rate steady at 3.0%. The over-five-year LPR remained at 3.5%, according to the official September 20 fixing. Many lenders reference this longer-term rate when setting mortgage prices. The decision kept both lending benchmarks 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 rates will stay in effect until the next scheduled LPR update. China’s one-year LPR serves as a key benchmark for numerous corporate and household loans, while the over-five-year rate is central to mortgage and long-term borrowing costs.
The decision to keep rates unchanged coincides with recent economic data related to lending, housing, and consumer prices. In August, China’s consumer price index increased by 0.8% compared to the same period last year. Prices also rose 0.4% from July, providing a current view of inflation as the September lending benchmarks remain stable.
Mortgage benchmark stays at 3.5%
Housing market figures across China continue to show significant variation among 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. Conversely, Beijing’s prices declined by 0.2% during the same month.
During the first eight months of 2026, real estate investment in China totaled 4.798 trillion yuan, representing a 19.9% drop compared to the same period in the previous year. Residential investment decreased 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 data on property and credit support the current LPR levels
From January through August, commercial property sales based on floor area reached 498.8 million square meters, a 12.1% decline from the previous year. Residential sales area fell by 13.0%, with the sales value dropping by 13.1%. Property developers’ individual mortgage loans during this period totaled 684.6 billion yuan, reflecting a 22.4% decrease.
By the end of August, China’s outstanding social financing stood at 464.8 trillion yuan, an increase of 7.2% year-on-year. Renminbi loans to the real economy amounted to 278.63 trillion yuan, growing 5.0% annually. Meanwhile, government bonds within the social financing stock reached 103.69 trillion yuan, up 13.5%. Against this economic backdrop, the one-year LPR remains at 3.0%, and the over-five-year mortgage-linked rate stays at 3.5%.
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