Home loan interest rates in big cities drop below benchmark   

(ECNS) -- Home loan interest rates across China's first-tier cities have fallen below the benchmark for the first time this year following a continuous upward trend.

Among the 525 banks surveyed in December, 66 in first-tier cities, including Beijing, Shanghai, Guangzhou and Shenzhen, have provided discounted interest rates, according to a Chinese housing market report released by financial search platform rong360.com.

Statistics showed that the average first home loan interest rate in first-tier cities is now below benchmark, with the minimum rate in Beijing at a 94 percent discount, followed by Shanghai, Guangzhou and Shenzhen, at 95 percent, 98 percent and 99 percent respectively.

The last such downward spiral appeared in November 2013, according to stats. Under a series of policy stimuli in 2014, many banks lowered their interest rate discount thresholds, with home loan interest rates in first-tier cities cut to below benchmark.

Analysts said the reduced cost of housing loans would attract more home buyers and help boost China's property market.