China recently cut its lending benchmark loan prime rate

China recently cut its lending benchmark loan prime rate (LPR) for the first time in 20 months to boost slowing economic growth despite being wary of loosening conditions in the highly leveraged property market. The one-year LPR was lowered by 5 basis points to 3.8 per cent from the earlier 3.85 per cent, while the five-year LPR remained at 4.65 per cent.

Most new and outstanding loans in China are based on the one-year LPR while the five-year rate influences the pricing of home mortgages.