# China slashes mortgage reference rates to revive property market | Reuters

> China cut its five-year loan prime rate for mortgages from 4.20% to 3.95%, its largest ever cut to the mortgage reference rate, to revive the property market. The yuan fell to its weakest level against the dollar since November 2023 after the announcement, and state banks sold dollars to slow the decline.

- Date: 2024-02-20 · published 2024-02-20T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/31896-china-slashes-mortgage-reference-rates-to-revive-property-market-reuters
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan raises the cost of imported goods for China and can shift the currency's effect on Chinese demand for soybeans and meal. Stimulus aimed at property could lift demand for feed-intensive meat over time, but the near-term price effect is mainly currency driven.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-11-01 | [China to defend 7 yuan per dollar rate, but may find it tough: Reuters poll](https://feedsoft.ai/events/62264-china-to-defend-7-yuan-per-dollar-rate-but-may-find-it-tough-reuters-poll.md) | -0.8% | -0.3% |
| USDCNY | 2024-03-22 | [China yuan slides to four-month low, state banks step in \| Reuters](https://feedsoft.ai/events/31441-china-yuan-slides-to-four-month-low-state-banks-step-in-reuters.md) | +0.4% | +0.5% |
| USDCNY | 2023-11-16 | [China’s yuan weakens on persistent property sector woes - Markets - Business Recorder](https://feedsoft.ai/events/12025-china-s-yuan-weakens-on-persistent-property-sector-woes-markets-business.md) | -1.3% | -1.9% |
| USDCNY | 2024-10-29 | [How the US election could impact China's markets \| Reuters](https://feedsoft.ai/events/28073-how-the-us-election-could-impact-china-s-markets-reuters.md) | -0.4% | +1.8% |
| USDCNY | 2022-07-27 | [China’s yuan weakens as Fed looms, property, COVID weigh - Markets - Business Recorder](https://feedsoft.ai/events/40700-china-s-yuan-weakens-as-fed-looms-property-covid-weigh-markets-business-recorder.md) | -0.2% | +1.3% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/china-lowers-mortgage-reference-rate-by-25-basis-points-2024-02-20/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.