Rong360 Jianpu Technology Inc. (NYSE:JT) Big Data Institute: Mortgage Rate in China Has Rebounded Since the Second Half of the Year

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China, Beijing, Beijing – 08-20-2019 (PRDistribution.com) — Key Points:

  1. National Average of First and Second-Home Mortgage Increased Across the Board
  2. Mortgage Rates Decreased or Remained Stable Among First-Tier Cities and Generally Increased in Second-Tier Cities
  3. First-Home Mortgage Rates in Shanghai Became Lowest in China while Suzhou Rose to the Top
  4. As Regulations Intensify, Real Estate’s Funding Tightens with a Possibility of Having Stringent Mortgage Policies in More Cities

 

According to data analytics by Rong360 Jianpu Technology Inc. (NYSE: JT) Big Data Research Institute, the average first-home mortgage rate of China for the month of July was 5.44% and the average mortgage rate for the second-home loan was 5.76%. Based on the data, mortgage rate in China has entered a phase of rebound since the second half of the year.

 

Average First-Home Mortgage Rate Trend in the Most Recent Year

 

 

Graph 1-1 Average First-Home Mortgage Rate Trend in the Most Recent Year

Sourced from: Rong360 Jianpu Technology Inc. (NYSE: JT) Big Data Research Institute

 

Average Second-Home Mortgage Rate Trend in the Most Recent Year

 

 

Graph 1-2 Average Second-Home Mortgage Rate Trend in the Most Recent Year

Sourced from: Rong360 Jianpu Technology Inc. (NYSE: JT) Big Data Research Institute

 

Among 35 cities monitored by Rong360 Big Data Research Institute, for first-tier cities, Shanghai and Shenzhen experienced a decrease in mortgage rates on a quarter-over-quarter basis; mortgage rates for Beijing and Guangzhou remained consistent compared to that of the previous month. As for second-tier cities, many adjusted their mortgage rates upwards, in which Suzhou, Hangzhou, Ningbo, Dalian, and Changsha experienced frequent adjustments. Some banks in the said cities were well below their quota and even paused their mortgage business. Haikou, Urumqi, Nanning, etc. experienced different levels of decline in mortgage rates.

Data analytics by Rong360 Jianpu Technology Inc. (NYSE: JT) Big Data Research Institute show that Shanghai’s first-home mortgage rate decreased to below-standard, exceeding Xiamen, making Shanghai the city with the lowest mortgage rate. Suzhou’s mortgage rate for first-home loans was 6.03%, sharply increased by 16 basis points over the last month, and became the city with the highest mortgage and the only city exceeding 6% for first-home mortgage rates. Dalian experienced the greatest increase in July,with the mortgage rates for first-home increased 20 basis points over the last month. The top 5 cities with most drastic rise in mortgage rates were Dalian, Suzhou, Hangzhou, Ningbo and Changsha—they frequently experienced upward adjustment in mortgage rates around the start and the end of the month. 

 

Chart 1-1 Top 10 Cities with Lowest First-Home Mortgage Rates in July, 2019

 

City                    Average Mortgage Rate                         Multiple of The Benchmark Lending Rate
Shanghai 4.84% 0.9870 
Xiamen 4.90% 1.0132 
Tianjin 5.11% 1.0433 
Urumqi 5.17% 1.0117 
Shenzhen 5.19% 1.0031 
Harbin 5.23% 1.0074 
Hangzhou 5.25% 1.0044 
Zhuhai 5.27% 1.0034 
Haikou 5.28% 1.0026 
Dalian 5.29% 1.0015 

 

Sourced from: Rong360 Jianpu Technology Inc. (NYSE: JT) Big Data Research Institute

 

Chart 1-2 Top 10 Cities with Highest First-Home Mortgage Rates in July, 2019

 

City                   Average Mortgage Rate                        Multiple of The Benchmark Lending Rate
Suzhou 6.03% 1.2312 
Wuhan 5.93% 1.2107 
Nanning 5.90% 1.2045 
Hefei 5.90% 1.2038 
Wuxi 5.85% 1.1933 
Zhengzhou 5.77% 1.1769 
Chengdu 5.64% 1.1500 
Nanchang 5.64% 1.1500 
Qingdao 5.64% 1.1500 
Nanjing 5.63% 1.1482 

 

Sourced from: Rong360 Jianpu Technology Inc. (NYSE: JT) Big Data Research Institute

 

Chart 1-3 Top 5 Cities with Highest Increase in First-Home Mortgage Rates in July, 2019

 

City                    Mortgage Rate in June                  Mortgage Rate in July                      Amount increase (basis point)
Dalian            5.09% 5.29% 20 
Suzhou            5.87% 6.03% 16 
Hangzhou            5.17% 5.25%
Ningbo            5.41% 5.49%
Changsha            5.47% 5.54%

 

Sourced from: Rong360 Jianpu Technology Inc. (NYSE: JT) Big Data Research Institute

 

Since the second half of the year, regulatory authority has taken multiple actions to tighten the rules regarding real estate financing among banks, trust funds, bonds, etc., in order to prevent misappropriation, indirect investments, etc., from entering the real estate market. Also in line with other policies, on one hand, banks will speed up the process of changing the credit structure in order to free up space taken by the real estate industry. More funds can thus flow into manufacturing as well as small and medium-sized enterprises, which are industries encouraged by the government. On the other hand, since stringent regulation on real estate market will not stop in the short term and the financing environment is still under pressure, more cities might establish stricter mortgage policies.

Media Contacts:

Company Name: Rong360 Jianpu Technology Inc. (NYSE:JT)
Full Name: Wang Di
Phone:
Email Address: Send Email
Website: ir.jianpu.ai

For the original news story, please visit https://prdistribution.com/news/rong360-jianpu-technology-inc-nysejt-big-data-institute-mortgage-rate-in-china-has-rebounded-since-the-second-half-of-the-year.html.

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About the Author: Sidney Martin

Sidney Marin Is a researcher and law student at York University (TORONTO). He has worked as the Director of the Graduate Lawyering Program. He worked for American law firms in Moscow, Russia for three years. Hegraduated from Columbia Law School, Columbia School of International and Public Affairs and Harvard College. He research interest is in human rights and health law, with a particular focus on the law and policy of vaccination.