FIRST OF ALL, I WANT TO BE AWARE OF THE LPR — THE LENDING MARKET OFFER RATE. IT PLAYS A KEY ROLE AS A BEACON WHEN BANKS SET VARIOUS LOAN RATES. YOU MIGHT ASK, WHEN DID THE LPR START

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THE LPR DATES BACK TO 8 OCTOBER 2019. PRIOR TO THIS, WHEN CONSUMERS APPLY FOR PERSONAL HOUSING LOANS, IT IS USUALLY THE COMMERCIAL LOANS WITH A BASE RATE OF INTEREST OF MORE THAN FIVE YEARS THAT ARE SELECTED, AND FOR THE INTEREST OF THE USERS, THE BANK WILL SET UP AN UPWARD OR DISCOUNT AT THE BASE RATE. IN ADDITION, THE MONTHLY RATE OF THE LOAN MARKET OFFER, WHICH WE CALL THE LPR, HELPS TO ADJUST THE RATE OF THE INCREMENTAL MORTGAGE。

YOU MIGHT ASK WHICH IS BETTER AT LPR RATES AND FIXED RATES? THERE ARE NO RULES ON THIS ISSUE. LPR AND FIXED INTEREST RATE CALCULATIONS VARY. FIXED INTEREST RATES MAY SOMETIMES LEAD TO ADDITIONAL GAINS, AND IT MAY ALSO SAVE INTEREST ON LPR-LINKED LOANS WHEN MARKET RATES FALL. THE KEY IS WHICH IS MORE SUITABLE FOR INVESTORS。

ASSUMPTIONS OF FIXED INTEREST RATES, THAT IS TO SAY, THE INTEREST RATES ON LOANS REMAIN CONSTANT AND, REGARDLESS OF CHANGES IN MARKET INTEREST RATES, CONSUMERS WILL NOT BE AFFECTED AND ENJOY STABILITY AS SOLID AS ROCK. ALTHOUGH THIS MEANS THAT IT MAY NOT BE POSSIBLE TO BENEFIT FROM THE FALL IN MARKET INTEREST RATES. HOWEVER, IF LPR WERE ADOPTED, IT WOULD BE ADJUSTED ON A MONTHLY BASIS WITH MARKET INTEREST RATES, WHICH WOULD BE FOLLOWED BY LOWER INTEREST RATES. IT SHOULD BE NOTED, HOWEVER, THAT AS SOON AS MARKET INTEREST RATES RISE, THEY WILL FOLLOW。