Multiple banks in the Chinese capital have reduced the interest rates for business loans in a bid to spur economic activity following the latest round of Covid restrictions.
Sources said to Securities Journal that the annual interest rate for certain business loans provided to promising small enterprises has fallen well below the 3% threshold.
One source from a branch of big state-owned lender Bank of China (BOC) said that interest rates for business loans had been reduced in both the first and second quarters, and now stand at a minimum of 3.3%.
The client manager from a branch of the Industrial and Commercial Bank of China (ICBC) said that it had recently reduced business loan rates to a minimum of 3.4%, while a Bank of Ningbo branch had cut rates for “new elite” enterprises to 4%.
For certain “new elite” enterprises and high-tech companies, the People’s Bank of China (PBOC) is reportedly accepting applications for tech innovation re-loan funds with an annualised interest rate of just 2.85%.