February Enterprise New Loan Disbursement Weighted Average Interest Rate Approximately 3.1%

On March 13, the Daily Economic News reported that in February, the weighted average interest rate for new corporate loans was approximately 3.1%, about 20 basis points lower than the same period last year; the weighted average interest rate for new personal housing loans was also about 3.1%, roughly 10 basis points lower than the same period last year.

Industry experts pointed out that current loan interest rates remain at historically low levels. The central bank continues to implement moderately easing monetary policies this year, introducing multiple structural monetary policy tools at the beginning of the year, including lowering policy rates, expanding the scale and scope of support, and improving policy elements. At the same time, liquidity in the banking system remains ample, and social financing conditions are relatively relaxed.

“Loan Transparency Sheets” Reduce Burden for Enterprises

The continued low level of social financing costs reflects favorable monetary and credit conditions. After several rate cuts in recent years, both corporate and residential loan interest rates are now quite low.

In recent years, the People’s Bank of China has maintained a supportive monetary policy stance. In September 2024, May 2025, and January 2026, it introduced significant monetary policy measures to support economic stability and growth.

Industry experts noted that the overall approach of the central bank’s recent rounds of monetary policy is to conduct countercyclical and cross-cycle adjustments based on macroeconomic and financial market changes. Different measures focus on specific areas, actively respond to market concerns, and stabilize market expectations. For example, in September 2024, facing increased downward pressure on the economy, the central bank implemented a series of financial policies, including reserve requirement ratio cuts and interest rate reductions. Notably, two newly created capital market support tools played an important role in boosting market confidence. After these tools were implemented, the market clearly bottomed out and rebounded. In May 2025, high tariff policies implemented by some countries disrupted the global trade order and caused turmoil in international financial markets. The central bank responded promptly by launching ten monetary and financial measures across three categories, effectively offsetting external shocks from high tariffs. Given the already large scale of financial aggregates, promoting the optimization of credit structure has become a key focus of current policies. In early 2026, the central bank introduced a series of monetary and financial policies to support the real economy, further optimizing the structural monetary policy toolkit in terms of price, scale, and scope of support.

In the past two years, the central bank has guided commercial banks to clearly disclose the annualized comprehensive financing costs of loans to enterprises and regulate intermediary and hidden costs of financing. Industry experts said that since the first pilot of the “Loan Transparency Sheet” (the “Enterprise Loan Comprehensive Financing Cost List”) started in September 2024, over a year ago, it has not only exposed various hidden costs in corporate financing but also made financing costs transparent, truly reducing the burden and costs for enterprises.

Significant Improvement in Manufacturing and Other Sectors

The 2026 government work report explicitly calls for continued implementation of moderately easing monetary policies. People’s Bank Governor Pan Gongsheng stated at this year’s National Two Sessions economic-themed press conference that the bank will continue to leverage incremental and stock policies, integrate and coordinate monetary and fiscal policies, enhance macro policy effectiveness, and help achieve a good start for the 14th Five-Year Plan. Industry experts pointed out that China’s monetary policy still has room to maneuver. Maintaining a conducive social financing environment and supporting stable economic growth are feasible and based on current conditions. However, given economic uncertainties, maintaining flexibility in monetary policy remains essential.

Based on the latest macroeconomic data, manufacturing and construction sectors showed clear signs of improvement in February 2026. The production and operation expectation indices for these two industries increased by 0.6 and 1.1 percentage points respectively from the previous month. As work resumed after the holiday, the overall economy is expected to remain resilient. Experts noted that PMI (Purchasing Managers’ Index) often fluctuates significantly in the month of the Spring Festival, especially this year when the holiday was extended and fell mostly in late February, which can impact enterprise operations. In February, manufacturing PMI fell by 0.3 percentage points from the previous month, indicating a slight slowdown in manufacturing activity, but growth momentum in high-tech manufacturing continued, remaining in expansion territory. The non-manufacturing business activity index also rose by 0.1 points, with notable recovery in the service sector, including accommodation, catering, and cultural, sports, and entertainment industries, all with business activity indices above 60, indicating high levels of activity. In the first two months of 2026, China’s total import and export value reached 77.3 trillion yuan, an 18.3% year-on-year increase, setting a new record for the same period. While seasonal factors contributed to the export growth exceeding expectations, it also reflects China’s strong foreign trade resilience and signs of recovery in the global industrial chain. Overall, business confidence in market development has strengthened.