of housing consumption loans, especially prohibition of mortgage refinance loans and additional mortgage loans for unspecified purposes and fluctuating with the valuation of real estate ; 3 ) guidance of individuals ’ consumption and investment and higher minimum down payment ratio and lending interest rate for second home mortgages ; 4 ) inclusion of solely foreign - invested commercial banks and joint - stock commercial banks into the regulatory policy system ; 5 ) strengthened credit information management in the real estate sector to fully leverage the credit information system that includes both enterprises and individuals. recently the pbc and the cbrc issued the supplementary notice in accordance with housing consumption policies and other policies at the state level. first, the number of home loans is calculated by households ( including loan applicants, their spouses and children ). in china, housing is a necessity for family life, so it is more reasonable to calculate the number of home loans by households, both in line with our national situation, and conducive to the enforcement of the notice, guidance and promotion the reasonable allocation of real estate resources and strengthening the macro - regulation of the real estate industry. second, given the reasonable demand of residents to improve their living conditions, households having purchased the first home with loans whose per capita residential space is lower than the local average level, first home loan rate applies if such households apply for a second mortgage, so as to curtail irrational demand ( including speculation ) and improve people ’ s living conditions. this policy is consistent with the notice. after borrowers present information of total living space certified by real estate administrative authority according to their registration information, commercial banks decide whether first home loan rate shall apply against living space information, residential permit and other documents, while the average per capita residential space comes from last year ’ s figure released by statistics department. second home interest rate applies to re - borrowers who don ’ t conform to the above conditions. third, the supplementary notice prescribes that housing provident fund loans are also subject to the notice. either housing provident fund loans or commercial loans are the liabilities of households. housing provident fund loans will not exempt from market volatility. therefore, second home loan rate applies to households who are in housing provident fund loan scheme and who are applying for commercial loans. there are some requirements concerning how to further implement the notice and the supplementary notice. first, reach a common understanding. regional offices of pbc, cbrc and commercial banks shall carefully study the spirits of the 17th cpc congress and central

rates? ”, brookings papers on economic activity. shiller robert, 1979, “ the volatility of long - term interest rates and expectations models of the term structure ”, the journal of political economy, vol. 87, no. 6, pp 1190 – 1219. bis central bankers ’ speeches sutton gregory, 1997, “ is there excess comovement of bond of bond yields between countries ”, bank for international settlements, working paper no. 44. bis central bankers ’ speeches