Chinese yuan strengthens after PBOC rolls out mortgage measures

<p>The piecemeal approach to China stimulus hasn't impressed the market yet but today's announcements on mortgages have captured more of the market's attention.</p><p>The yuan is trading at a two-week high after a series of steps on mortgages.</p><p>The PBOC today said existing mortgage rates would be lowered from Sept 25.</p><p>The new rules say down-payments for first homes should be no less than 20% and down-payments for second homes no less than 30%. For second home purchases, the rate floor is now no lower than LPR +20bps while on first homes it's LPR -20bps.</p><p>The PBOC said lowering existing mortgages rates is beneficial for expanding consumption and investment.</p><p>Chinese stocks today wrapped up their worst month since February.</p><p>On the surface, these moves should be good for global risk trades but there's also a risk of disappointment that some type of stronger stimulus isn't in the pipeline.</p>

This article was written by Adam Button at www.forexlive.com.