China maintains key loan prime rates in July

China’s one-year loan prime rate (LPR), a market-based benchmark lending rate, was unchanged at 3 per cent today, according to the National Interbank Funding Center. The over-five-year LPR, used by many lenders as a basis for mortgage rates, also stayed unchanged at 3.5 per cent.Interest rates on newly issued loans in China have remained relatively low.

China’s one-year loan prime rate stayed at 3 per cent on Monday, while the over-five-year LPR remained at 3.5 per cent.
Stable benchmark rates keep borrowing-cost signals steady for manufacturers, exporters and retail supply-chain planners.
June 2026 data showed new corporate loan rates around 3 per cent, about 20 basis points lower year on year.

The official data showed that in June 2026, the weighted average interest rate for new corporate loans was around 3 per cent, about 20 basis points lower than a year earlier, while the rate for new personal housing loans was about 3.1 per cent, essentially unchanged year on year (YoY).

China will continue to implement a more proactive fiscal policy and adopt an appropriately accommodative monetary policy in 2026, this year’s government work report noted.

For manufacturers, exporters and sourcing businesses monitoring working-capital costs in China, the unchanged LPRs keep the benchmark financing-cost signal stable for households and businesses. Lower rates ease the burden on borrowers and can support higher investment and consumption.

Fibre2Fashion News Desk