Caixin Global – Latest China News & Headlines

Home >


CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

WeRide to Test Fully Autonomous Vehicles in Guangzhou
Trending in China: Why Are Chinese Netizens Saying Kanye West Could be ‘China’s First’ U.S. President?
Trending in China: Will Weibo’s Fight Against Porn Have Other Unintended Side Effects
Tencent Leads $40 Million Investment in Online Art Educator
Alibaba Aims to Facilitate $1.4 Trillion in Sales Annually By 2024
Trending in China: Death of Giant Panda Cubs Sparks Concerns About Treatment of ‘National Treasure’
China CFO of Indian Oyo Quits to ‘Pursue Other Professional Opportunities’
Sequoia Capital Opens Its First Tech Incubation Center in Shanghai
Some 266 Foreign-Invested Firms Approved to Offer Telecom Services in China in First Half of 2020
Trending in China: Should Internet Celebrities Be Part of the School Curriculum?
Sequoia China Leads Nearly $100m Round in Storytelling App Kuaidian
Medical Robot Maker Finds Elixir in STAR Board’s Market Reforms
Trending in China: Outrage Ensues as Updated U.S. Student Visa Policies Force International Students into a Dilemma
Tencent’s PUBG Mobile Game Hits $3 Billion Milestone
Luckin Coffee Shareholders Vote to Remove Chairman, Bloomberg Reports
France Won’t Ban But Will Discourage Use of Huawei 5G Equipment, Official Says
Trending in China: ‘Lipstick King’ Li Jiaqi Settles in Shanghai, Prompting a Rethink of ‘Talent’
Tencent Plays in U.S. With California Game Studio Launch
Trending in China: Shenzhen Thinks Only Children Should Get Paid Leave to Look After Their Parents - Cue Heated Debate
German Drugmaker BI Launches Shanghai Center to Harness Chinese Expertise
New Reference Rates for Loans Edge Down in Line With Market Expectations

By Guo Yingzhe and Peng Qinqin / Nov 20, 2019 01:52 PM / Finance

Photo: VCG

Photo: VCG

New reference rates used by Chinese banks to price loans edged down on Wednesday, in line with market expectations, as the country’s central bank eases monetary policy in an attempt to cut borrowing costs and shore up the slowing domestic economy.

Both the one-year national loan prime rate (LPR) and the five-year-plus national LPR dropped 5 basis points to 4.15% and 4.8%, respectively, according to data from the China National Interbank Funding Center, an entity under the People’s Bank of China (PBOC).

It is the first time the five-year-plus LPR has moved downward since an August reform that replaced the central bank’s benchmark lending rates with the national LPRs as the new reference for pricing loans. The five-year-plus LPR is a reference for loans with the same maturity, such as most mortgages.

Amid rising concerns about downward pressure on China’s economic growth, as shown in October’s worse-than-expected economic data, the PBOC has injected more capital into financial markets and lowered commercial banks’ cost of borrowing from the central bank. Earlier this month it lowered the one-year rate on its medium-term lending facility (MLF). Analysts believe the move is the reason why the LPRs fell on Wednesday, as the MLF rate is the reference for 18 commercial banks to set their own LPRs, which in turn determine the national LPRs.

Read the full story on Caixin Global later today.

Contact reporter Guo Yingzhe (

Related: Four Things to Know About How Loans Now Get Priced in China

Share this article
Open WeChat and scan the QR code