China Extends Mortgage Terms to 40 Years to Stimulate Weak Demand

Key Facts

1China's central bank extended the maximum term for individual home mortgages from 30 years to 40 years.

2Chinese household loans fell by 1.03 trillion yuan during the first eight months of 2026.

The People's Bank of China extended the maximum term for individual home mortgages from 30 years to 40 years. According to Xinhua, Chinese household loans fell by 1.03 trillion yuan during the first eight months of 2026, reflecting a broader trend of consumers prioritizing debt reduction.

The policy shift aims to provide flexibility and promote a virtuous cycle within the property sector, though homebuyers remain cautious due to the economic slowdown. Regarding market performance, BACHY closed at $19.02 on September 25, 2026, after trading between a high of $19.28 and a low of $18.64 during that session.