The new loan prime rate remains unchanged.

The new Loan Prime Rate (LPR) for the latest period was released on May 20, with both the 1-year and over-5-year LPR remaining unchanged.

On the same day, the People’s Bank of China authorized the National Interbank Funding Center to announce that the 1-year LPR is 3%, and the over-5-year LPR is 3.5%.

The LPR serves as the main reference benchmark for loan pricing and is published monthly.

China’s loan interest rates continue to remain low. Data shows that in April, the weighted average interest rate for new corporate loans (including domestic and foreign currency) was approximately 3.1%, about 20 basis points lower than the same period last year; the weighted average interest rate for new individual housing loans (including domestic and foreign currency) was about 3.1%, about 6 basis points lower than the same period last year.

Loan Prime Rate (LPR)

The Loan Prime Rate (LPR) is a benchmark interest rate used by Chinese banks for lending to their best customers, introduced in 2019 as part of financial market reforms. It replaced the previous central bank-administered benchmark lending rate, aiming to make interest rates more market-driven and improve monetary policy transmission. The LPR is calculated based on the rates of 18 selected commercial banks and is published monthly by the People’s Bank of China.

People’s Bank of China

The People’s Bank of China (PBOC) is the central bank of the People’s Republic of China, established on December 1, 1948, through the merger of the Huabei Bank, Beihai Bank, and Xibei Farmer Bank. It was founded to stabilize the country’s currency and financial system following the Chinese Civil War, and it now plays a crucial role in formulating monetary policy, regulating financial markets, and issuing the national currency, the renminbi. Headquartered in Beijing, the PBOC has evolved into a key institution for China’s economic development and global financial integration.

National Interbank Funding Center

The National Interbank Funding Center is a key financial infrastructure that facilitates the exchange of funds and liquidity between banks in a country. Established to improve the efficiency of interbank lending and borrowing, it helps stabilize the banking system by managing short-term cash needs. Its history often ties to broader financial reforms aimed at modernizing payment systems and reducing systemic risk in the national economy.

Loan Prime Rate (LPR)

The Loan Prime Rate (LPR) is a benchmark interest rate used by Chinese banks for lending to their best customers, introduced in 2019 as part of China’s financial market reforms to replace the previous central bank-set benchmark lending rate. It is calculated based on quotes from a panel of major commercial banks and is intended to better reflect market supply and demand for credit. The LPR serves as a key tool for the People’s Bank of China to guide borrowing costs and support monetary policy transmission.

People’s Bank of China

The People’s Bank of China (PBOC) is the central bank of the People’s Republic of China, established on December 1, 1948, through the merger of several regional banks. It was originally founded in Shijiazhuang, Hebei Province, and later moved to Beijing. As the country’s primary financial authority, it manages monetary policy, regulates financial institutions, and issues the national currency, the Renmin

People’s Bank of China

The People’s Bank of China (PBOC) is the central bank of the People’s Republic of China, established on December 1, 1948, through the merger of several regional banks. It was originally created to stabilize the country’s financial system and issue the national currency, the Renminbi. Over time, the PBOC has evolved into a key institution responsible for monetary policy, financial regulation, and managing China’s foreign exchange reserves.

National Interbank Funding Center

The National Interbank Funding Center is an institution that facilitates short-term lending and liquidity management among banks, ensuring stability in the financial system. Its history is tied to the development of modern banking infrastructure, often established to regulate interbank interest rates and mitigate systemic risks. While specific origins vary by country, such centers typically emerged in the late 20th century to support monetary policy and efficient fund allocation.

Huabei Bank

Huabei Bank, established in 1948 in the People’s Republic of China, was a key financial institution that played a significant role in the early economic reconstruction after the Chinese Civil War. It was later merged into the People’s Bank of China in 1949, contributing to the unified national banking system under the new government. The bank’s history reflects the transition from regional financial management to centralized monetary control in modern China.

Beihai Bank

Beihai Bank is a historic financial institution located in the city of Beihai, Guangxi, China. Originally established in the early 20th century, it played a key role in the region’s economic development during the era of foreign trade and treaty ports. Today, its former building stands as a preserved cultural site, reflecting the blend of Western and Chinese architectural styles from that period.

Xibei Farmer Bank

The Xibei Farmer Bank was a financial institution established in the 1930s in China’s northwestern region, primarily serving agricultural communities and supporting rural development. It played a key role in providing loans and financial services to farmers during a period of economic hardship and political transition. The bank reflected early efforts to modernize rural finance in China, though its operations were later absorbed into broader national banking systems.

Beijing

Beijing, the capital of China, is one of the world’s oldest continuously inhabited cities, with a history spanning over 3,000 years. It served as the imperial capital for the Ming and Qing dynasties, leaving a legacy of iconic landmarks such as the Forbidden City and the Temple of Heaven. Today, Beijing is a vibrant global metropolis that harmoniously blends its ancient cultural heritage with rapid modernization.

Shijiazhuang

Shijiazhuang is the capital of Hebei Province in northern China, known for its rapid development as a transportation and industrial hub. Originally a small village, it expanded significantly in the early 20th century with the arrival of railways, becoming a provincial capital in 1968. Today, it serves as a gateway to cultural sites like the Zhaozhou Bridge, one of China’s oldest stone arch bridges.

Hebei Province

Hebei Province, located in northern China, surrounds the capital city of Beijing and has a rich history dating back thousands of years. It was home to ancient states during the Warring States period and later became a key region for imperial dynasties, including the Ming and Qing, who built parts of the Great Wall along its northern borders. Today, Hebei is known for its cultural heritage sites, such as the Chengde Mountain Resort and the Zhaozhou Bridge, one of the oldest open-spandrel stone arch bridges in the world.