In February, the weighted average interest rate on newly issued enterprise loans was approximately 3.1%, down about 20 basis points from the same period last year.

The Financial Daily Reporter | Zhang Shoulin The Financial Daily Editor | Huang Sheng

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

Industry experts pointed out that loan interest rates remain at historically low levels. This year, the central bank continues to implement moderately easing monetary policies, releasing multiple incremental policy measures at the beginning of the year involving structural monetary policy tools, including lowering policy rates, expanding the scale and scope of support, and improving policy elements; at the same time, maintaining ample liquidity in the banking system and relatively relaxed social financing conditions.

“Loan Transparency Paper” Eases Burden and Reduces Costs for Enterprises

The continued low level of social financing costs reflects the favorable monetary and credit conditions and also indicates that effective financing needs of the real economy are being fully met. After several rate cuts in recent years, both corporate and residential loan interest rates are now relatively 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 stable economic growth.

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

In the past two years, the People’s 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 program started in September 2024, for over a year, the “Loan Transparency Paper” has not only exposed various hidden costs in enterprise financing but also made financing costs transparent, truly reducing burdens and costs for enterprises.

Significant Improvement in Manufacturing, Construction, and Other Sectors

The 2026 government work report explicitly requires the continuation of moderately easing monetary policy. President Pan Gongsheng of the People’s Bank also stated at this year’s National “Two Sessions” economic-themed press conference that efforts will continue to leverage the integration and synergy of incremental and stock policies, monetary and fiscal policies, to 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. Creating a suitable social financing environment and supporting stable economic growth are feasible and conditions are in place, but maintaining flexibility in monetary policy is also very necessary given economic uncertainties.

Based on the latest macroeconomic data, in February 2026, expectations for manufacturing and construction sectors showed clear improvement. The production and operation activity expectation indices for these two industries increased by 0.6 and 1.1 percentage points respectively from the previous month. As post-holiday resumption of work and production continues, the overall economy is expected to remain resilient. Industry experts noted that PMI during the month of the Spring Festival often fluctuates significantly, especially this year when the holiday was extended and fell in late February, which inevitably affected enterprise operations. The manufacturing Purchasing Managers’ Index (PMI) in February decreased by 0.3 percentage points from the previous month, indicating a slight slowdown in manufacturing activity, but high-tech manufacturing continued to show growth momentum and remained in expansion territory. The non-manufacturing business activity index also rose by 0.1 points from the previous month, with notable recovery in the services sector, including accommodation, catering, and cultural and entertainment industries, all with business activity indices above 60, indicating high prosperity. In the first two months of 2026, China’s total import and export value reached 7.73 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.