China's Loan Rates Could Move Lower Still-Herald

The interest rates applied to China’s corporate loans may continue to fall as the PBOC is keen to expand credit, while the weakness of the real economy has limited demand for such loans, the 21st Century Business Herald reported, citing analysts. The weighted average interest rate of newly issued corporate loans in June was 4.16%, a record low, the newspaper said, citing Wang Yifeng, analyst at Everbright Securities. For the household sector, the weighted average mortgage rate sat at 4.62% in June, hitting the lowest level observed since 2017, as unfinished housing projects dampened buyers’ confidence, the newspaper said, citing Dai Zhifeng, director at Zhongtai Securities Research Institute. The central bank may guide mortgage rates lower to help boost housing demand, the newspaper said, citing Wang.