Jul 08, 2025 4:49 a.m.

Media: China ordered banks to significantly cut lending rates to small firms

Media: China ordered banks to significantly cut lending rates to small firms

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The Chinese officials reportedly issued orders to banks across the countries to cut lending rates to small firms ‘significantly’ in the third quarter in an effort to ensure stable growth amid escalating trade tension with the USA, media reports said.

It is reported that corporate lending rates in China have constantly gone up as a result of the multi-year crackdown on riskier lending, which has hit smaller manufacturers. Earlier this month, the People’s Bank of China cut reserve requirement ratios for commercial banks by 50 basis points, releasing USD 108 billion in liquidity to the market.

It is unclear on which rate the People’s Bank of China would set for small businesses, however, the weighted average lending rate for the non-financial corporate sector was at 5.96% in March 2018.