Core Viewpoint - The People's Bank of China has lowered the Loan Prime Rate (LPR) by 10 basis points, with the 1-year LPR and the 5-year LPR adjusted to 3.00% and 3.50% respectively, while some cities like Guangzhou and Xiamen have adjusted their mortgage rates accordingly to maintain stability in the housing market [1][4][6]. Summary by Relevant Sections Loan Prime Rate Adjustment - The LPR was reduced by 10 basis points on May 20, with the 1-year LPR dropping from 3.10% to 3.00% and the 5-year LPR from 3.60% to 3.50% [1][4]. - This adjustment is expected to influence mortgage rates across various regions, including Guangzhou and Xiamen [1][6]. Regional Mortgage Rate Changes - In Guangzhou, the first home loan interest rate was adjusted from LPR-60 basis points to LPR-50 basis points, effectively maintaining the rate at 3% after the LPR adjustment [2][4]. - Xiamen's first home loan interest rate was also adjusted, moving from LPR-50 basis points to LPR-45 basis points, resulting in a current rate of 3.05% [6]. Industry Self-Regulation and Market Stability - The adjustment in mortgage rates is part of an industry self-regulation effort to prevent excessive competition among banks that could lead to relaxed risk controls and increased non-performing loans [1][5]. - A self-regulatory rule has been established in Guangzhou to maintain the first home loan interest rate at no lower than 3%, providing a stable expectation for the market [5][6]. Future Outlook on Mortgage Rates - Experts believe there is still room for further reductions in mortgage rates in Guangzhou, despite the current stability [7][10]. - The overall trend indicates that mortgage rates may continue to decline in response to changes in deposit rates and policy rates [10]. Market Performance Indicators - Recent data shows fluctuations in the real estate market, with new home sales in Guangzhou experiencing a decline in transaction volume, while second-hand home transactions have seen growth [9]. - The statistics indicate a mixed performance in the housing market, with new home sales down by 22% month-on-month, while second-hand home sales increased by approximately 12.97% year-on-year [9].

Group 1 - Guangzhou's first home loan interest rate for five years and above has been raised by 10 basis points, from 3.0% to 3.1%, reflecting banks' adjustments to interest spreads amid a backdrop of LPR reductions [1] - The increase in home loan rates may slightly raise purchasing costs and could suppress demand from first-time buyers, necessitating attention to market reactions [1] Group 2 - The domestically produced C919 aircraft has officially commenced commercial operations on the Shanghai Hongqiao to Shenzhen route, marking its first regular commercial flight in Shenzhen [2] - This development is expected to help the C919 accumulate operational data, which will inform future model research and improvements, thereby advancing China's aviation manufacturing technology and enhancing its global standing [2] Group 3 - Hong Kong welcomed 16 million visitors in the first four months of the year, with a double-digit growth rate in foreign tourists, driven by events and activities [3] - The influx of tourists is anticipated to stimulate local consumption in shopping, dining, accommodation, and entertainment, contributing to economic growth in Hong Kong [3] Group 4 - Guangzhou plans to launch eight autonomous driving service demonstration lines, becoming the first city in the country to offer all-weather autonomous driving services [4] - This initiative is expected to enhance the city's reputation for technological innovation and urban governance, promoting its image as an "innovation city" [4] Group 5 - The Shenzhen Composite Index closed at 10,179.60 points, down 0.07% on May 16 [5] - Notable gainers in the Shenzhen market included N Ze Run, with a price of 65.96 yuan and a 99.52% increase, and Greebo, with a price of 20.50 yuan and a 20.02% increase [6] - Conversely, leading decliners included Weixing Intelligent, with a price of 16.97 yuan and a 10.02% decrease, and Maohua Shihua, with a price of 3.99 yuan and a 9.93% decrease [6]

Core Viewpoint - The article discusses the recent trend of rising mortgage rates in Guangzhou despite a general downward trend in the Loan Prime Rate (LPR), highlighting the uncertainty surrounding these changes and their implications for the housing market [1][2]. Group 1: Mortgage Rate Changes - Guangzhou's first home mortgage rate has been raised by 10 basis points (BP) to 3.1%, changing from LPR-60BP to LPR-50BP, effective from May 17 [1]. - There is speculation that if the LPR is lowered by 10 BP on May 20, the mortgage rate could potentially drop to 3% [1][2]. - The current mortgage rate of 3% is considered a critical threshold for banks, as rates below this may lead to losses in their mortgage business [2]. Group 2: LPR and Market Reactions - The People's Bank of China announced a reduction in policy rates, which is expected to lead to a corresponding decrease in the LPR by approximately 10 BP [2]. - If the LPR decreases, it could result in several cities seeing their mortgage rates fall into the "2" range, which would be a significant shift in the market [2]. - Last year, following a decrease in the LPR, Guangzhou saw extremely low mortgage rates, with some banks offering rates as low as 2.6%, creating a competitive environment among lenders [3][4]. Group 3: Historical Context - The trend of ultra-low mortgage rates in Guangzhou was halted in October last year, leading to a standardization of the first home mortgage rate at 3% [4]. - Prior to this, multiple cities had also experienced first home mortgage rates entering the "2" range, indicating a competitive pricing environment among banks [4].

Core Viewpoint - Homebuyers remain highly sensitive to interest rates, with recent reports indicating an increase in the first mortgage rate in Guangzhou by 10 basis points to 3.1% (LPR - 50 basis points) [1] Group 1 - The recent news about the mortgage rate adjustment in Guangzhou has not been officially confirmed due to the timing of the announcement coinciding with a weekend [1] - Local mortgage and real estate intermediaries express uncertainty regarding the rate changes, emphasizing the need for official confirmation [1]

Group 1 - The LPR (Loan Prime Rate) is trending downward, yet there are indications that mortgage rates may be increased, with reports of first-home mortgage rates in Guangzhou rising by 10 basis points to 3.1% [1][2] - There is uncertainty regarding the mortgage rate adjustments, as some mortgage intermediaries have confirmed the increase, while others await official notifications from banks [1][2] - The People's Bank of China announced a reduction in policy rates, which is expected to lead to a corresponding decrease in the LPR by approximately 0.1 percentage points [1] Group 2 - If the LPR is reduced by 10 basis points, it could result in mortgage rates in several cities dropping to the "2" range, with a potential rate of 2.9% in Guangzhou if the current discount remains [2] - Maintaining a mortgage rate at or above 3% is crucial for banks, as rates below this threshold could lead to unprofitable mortgage operations [2] - Following a previous LPR reduction in July of last year, Guangzhou saw extremely low mortgage rates, with some banks offering rates as low as 2.6%, which was below the public fund rate [3]