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 average weighted interest rate for newly issued corporate loans in February was about 3.1%, down approximately 20 basis points from the same period last year; for personal housing loans, the average weighted interest rate was about 3.1%, down about 10 basis points year-over-year.

Industry experts point 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 lending scale and support scope, and improving policy elements. At the same time, liquidity in the banking system remains ample, and social financing conditions are relatively relaxed.

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

The continued low level of social financing costs reflects favorable monetary and credit conditions and 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 rates are now at relatively low levels.

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 note that the overall approach of the central bank’s recent monetary policies is to conduct countercyclical and cross-cycle adjustments based on macroeconomic and financial market changes. Different measures focus on specific areas, actively respond to market concerns, and stabilize market 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—its most comprehensive “combo” in recent years. Notably, two newly created capital market support tools played a key role in boosting market confidence. After implementation, the market clearly bottomed out and rebounded. In May 2025, some countries’ high-tariff policies disrupted global trade order and caused turmoil in international financial markets. The People’s Bank responded promptly with ten monetary and financial measures across three categories, effectively offsetting external shocks from high tariffs. Given the already large scale of financial aggregates, promoting the optimization of credit structure has become a key policy focus. In early 2026, the People’s Bank introduced a series of monetary and financial policies supporting the real economy, further refining 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 say that since the first pilot of the “Loan Transparency Paper” started in September 2024, over a year ago, it 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’ Expectations

The 2026 government work report explicitly calls for continuing 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 be made 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 indicate that China’s monetary policy still has room to maneuver. Maintaining a suitable social financing environment and supporting stable economic growth are feasible and conditional, but flexibility remains essential given economic uncertainties.

Based on the latest macroeconomic data, manufacturing and construction sectors showed clear expectations of improvement in February 2026. 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. Experts note that PMI fluctuations are usually larger in the month of the Spring Festival, especially this year when the holiday was extended and fell mostly in late February, which inevitably affected enterprise operations. The manufacturing PMI in February decreased by 0.3 percentage points from the previous month, indicating a slight slowdown in manufacturing activity, but growth momentum in high-tech manufacturing remains strong, continuing in expansion territory. The non-manufacturing business activity index also rose by 0.1 points, with notable recovery in the service sector, including accommodation, catering, and cultural, sports, and entertainment industries, all with business activity indices above 60%, indicating high levels of prosperity. In the first two months of 2026, China’s total import and export value reached 7.73 trillion yuan, an 18.3% year-over-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.