According to the official website of the People's Bank of China, the People's Bank of China and the China Banking and Insurance Regulatory Commission issued a notice, deciding to establish the first dynamic adjustment mechanism of housing loan interest rate policy. In cities where the selling price of new commercial residential buildings has declined month on month and year on year for three consecutive months, the lower limit of the local loan interest rate policy for the first housing can be maintained, lowered or cancelled periodically. This policy gives cities with falling house prices the right to independently lower the mortgage interest rate, which fully reflects the support for the first house. Yan Yuejin, research director of E-House Research Institute's think-tank center, said in an interview with China.com that the key point of this policy is that cities with persistently weak housing prices can independently determine the space for the reduction of mortgage interest rates. He said that it is worth noting that the policy also uses the term "phased", which means that such authority can be implemented if the house price continues to be weak, and it is necessary to suspend or adjust the policy authority if the house price recovers or overheats again. This shows that the policy will be dynamically adjusted based on the house price or market trend. In May 2022, the central bank made it clear that the lower limit of housing loan interest rate is "LPR-20 basis points". In September 2022, the Notice on the Periodic Adjustment of Differential Housing Credit Policy made it clear that cities with weak housing prices could exceed the lower limit of "LPR-20 basis points", but the policy would be effective at the end of December 2022. Yan Yuejin pointed out that the policy is actually an adjusted version of the policy on the lower limit of interest rate of housing loans in 2022, indicating that the operation of reducing housing loans and allowing some cities to break through the lower limit of interest rates should be continued in 2023. He said that the credit policy will continue to be loose in 2023, especially to protect and support those who just need houses. This policy is targeted at cities where the selling price of newly built commercial residential buildings has declined month on month and year on year for three consecutive months. The number of such cities is increasing. According to the national 70 city house price index data of the National Bureau of Statistics, the number of cities in 2022 will be 23, while the current statistics will increase to 38. There are 13 second tier cities, including Dalian, Fuzhou, Harbin, Lanzhou, Nanning, Xiamen, Shenyang, Shijiazhuang, Taiyuan, Tianjin, Wuhan, Changchun and Zhengzhou. There are 25 third and fourth tier cities, including Bengbu, Beihai, Changde, Dandong, Guilin, Huizhou, Jilin, Jining, Jinhua, Jinzhou, Jiujiang, Luoyang, Mudanjiang, Pingdingshan, Qinhuangdao, Shaoguan, Tangshan, Wenzhou, Wuxi, Xiangyang, Xuzhou, Yangzhou, Yichang, Yueyang and Zhanjiang. Yan Yuejin said that the obvious increase in the number of cities with weak housing prices means that all regions should take the initiative to reduce mortgage interest rates. From the list of cities, there are some typical cities with weak housing prices in second tier and third tier cities, such as Tianjin, Taiyuan and Zhengzhou in second tier cities, Huizhou, Jinhua and Xuzhou in third tier cities. He pointed out that, with reference to the level of such cities, local governments can also implement similar policies for the same cities - periodically maintain, reduce or cancel the lower limit of the local first housing loan interest rate policy. (Liu Xinshe)