China's LPR Seen Further Lowered-Journal

China’s benchmark Loan Prime Rates may decline further, with a particular focus on the five-year measure, the China Securities Journal reported, citing analysts. Among the newly issued loans in June, the proportion of loans with interest rates lower than the LPRs has increased, which may drive down the latest quotation of the LPRs, the newspaper wrote, citing Xie Yunliang, chief macro analyst of Cinda Securities. The weighted average interest rate of newly issued loans in June hit a new low, the newspaper noted, citing the PBOC’s Q2 Monetary Policy Report. The central bank updates LPR quotations on the 20th of every month (or the soonest day afterwards if the 20th falls on a weekend), and the current 1-year and 5-year LPR fixings sit at 3.70% and 4.45%, respectively.