China Announces Mortgage Subsidies and Cuts Policy Lending Rate

China announced a nationwide interest subsidy for newly issued commercial mortgages for first-time homebuyers, starting October 1 and initially running for one year. Eligible homes must be no larger than 120 square meters and cost no more than 1.5 million yuan; the subsidy covers up to 1 million yuan in borrowing at one percentage point annually for as long as five years. The People's Bank of China also said it would lower its one-year pledged supplementary lending rate from 1.75% to 1.5%. The central bank said it would extend that facility to water, power-grid, computing, communications, urban-pipeline and logistics projects.