TREE NEWS reports: The weighted average interest rate on newly issued corporate loans in Shanghai stood at 2.55% in September, down 17 basis points from a year earlier and at a historic low, the People’s Bank of China Shanghai Head Office said at its fourth-quarter 2026 press conference. The weighted average rate on loans to small and micro enterprises fell 25 basis points year on year to 2.75%.
Shanghai new corporate loan weighted average rate falls to 2.55% in September
The significance here is less the headline rate than the widening spread between the overall corporate rate and the small-and-micro segment, which narrowed only modestly despite the sharper year-on-year drop — suggesting targeted credit easing is reaching smaller borrowers but still at a premium. This matters most for banks' net interest margins in Shanghai and for any RWA-linked lending platforms whose economics depend on funding spreads. Whether the small-and-micro rate keeps closing the gap with the headline rate, and whether the pace of decline slows now that rates sit at a historic low, are the open questions worth tracking.
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