China’s Recent Policies

Easing on Interest Rate and Reserve-Requirement Ratio ("RRR")

Date Leading Rate Reserve Requirement Ratio ("RRR")
Oct 2015 4.35% 17.5%*
Aug 2015 4.60% 18.00%
Jun 2015 4.85% 18.50%
May 2015 5.10% 19.50%*
Mar 2015 5.35% 19.50%*
Nov 2014 5.60% 20.0%
* For big banks only

Relaxation of Purchase Restrictions

  • 1st time home buyers:
    • Mar 2015: 20% down payment for those using housing provident fund (previously: 30%)
  • 2nd time home buyers:
    • Mar 2015: 40% down payment (previously: 60%)
    • Mar 2015: 30% down payment for those using housing provident fund
  • Foreign buyers
    Aug 2015: Overseas companies' Chinese units and foreign nationals working and living in China can buy properties for their own use that meet "real needs". Requirements that foreign investors should have paid their registered capital in full before taking local loans have been removed.