Rate Cuts on Existing Home Loans ‘Highly Probable,’ China Merchants Says

What’s new: A rate cut for existing home mortgages is necessary, and China Merchants Bank has been studying such a move, a senior bank executive said

amid rising expectations of a broader easing of mortgage terms to arrest the housing market downturn.

China Merchants developed a contingency plan for potential reductions in existing mortgage rates, but the final plan has not been completed, said Peng Jiawen, the bank’s assistant president.