China Launches Mortgage Interest Subsidy From October 1

The notable design choice here is the cap: by limiting subsidized loans to 1 million yuan, the support is aimed at ordinary household borrowers rather than the upper end of the mortgage market, which keeps the fiscal cost bounded while still moving headline borrowing costs. The open question is whether a one-percentage-point subsidy actually shifts purchase or refinancing decisions when it applies only below that threshold, or whether it mainly reshapes demand within the capped segment. Watch whether the scheme is extended, widened, or left as a fixed window.