CCTV.com - CNTV English - CCTV News

Rate cut welcomed by mortgagors

07-07-2012 01:09 BJT

Watch Video

Play Video

Businesses may be cheering the Chinese central bank’s move to cut interest rates, but for depositors - they’re looking to consider longer-term deposits, or investing their cash elsewhere.

Zhang Bing, a home buyer in Beijing, had put off purchase plans several times due to rising mortgage rates last year. But now, following the latest interest rate cut, Mr Zhang seems to be closer to securing a mortgage for a home in the city.

Zhang Bing said, "I’m quite happy. The rate cuts have partially taken some debt repayment pressure off me."

A local lender says the central bank’s recent cuts could save 300 yuan a month for its mortgagor clients, on a one million yuan loan with a maturity period of 20 years.

But for those who prefer to save their money in the bank, their choice is becoming less profitable due to the new policy. Some depositors choose to put their money in longer term deposits, at higher interest rates.

A bank employee said, "Before the cuts, the one year deposit was the top choice for our clients. But now 3 to five year term deposits are becoming much more popular."

Chen Cheng, bank client, said, "I may consider converting my one year term deposit into a three year one, to ensure a higher rate of return."

In the meantime, lower interest rates will prompt some risk-prone investors to switch their money to the capital market, in pursuit of higher yields.

Editor:Wang Chuhan |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program