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China is considering allowing homeowners to refinance as much as $5.4 trillion of mortgages to lower borrowing costs for millions of families and boost consumption. Under the plan, homeowners would be able to renegotiate terms with their current lenders before January, when banks typically reprice mortgages, people familiar with the matter said, asking not to be identified discussing private information. They would also be allowed to refinance with a different bank for the first time since the global financial crisis, the people said “If implemented, the move would send a signal that the central government is intensifying measures to support overall economy, protect household wealth and spur consumption,” said Raymond Cheng, head of China property research at CGS International Securities Hong Kong. “It would also indirectly help the real estate sector.”
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