China to cut mortgage rates as part of plan to prop up property market

China has announced significant measures to support its struggling property market, including cutting mortgage rates and converting unsold homes into affordable housing. These actions come as the property sector, which once drove a quarter of the nation's economic growth, faces severe challenges with falling house prices and large-scale developer defaults.

The People’s Bank of China will eliminate the minimum interest rate and reduce down-payment ratios, alongside setting up a 300 billion yuan fund to aid state-owned companies in purchasing homes. This move aims to restore confidence in the market, which has been shaken by defaults and declining sales, impacting economic stability and employment.