Shanghai’s financing costs have remained stable but declined throughout the first three quarters of the year, according to the Shanghai headquarters of the People’s Bank of China. The total credit volume has continued to grow and financing costs have dropped.
In the first three quarters of the year, the balance of domestic and foreign currency loans increased by 6.5% year-on-year, with the credit growth rebounding after bottoming out in the second quarter. The weighted average interest rate of newly issued corporate loans in September remained at a historically low range of 3.38%.
The growth rate of corporate loans has been rapid, particularly for medium and long-term loans and for small and micro enterprises and private enterprises. In contrast, the growth rate of household loans has slowed down, although short-term consumer credit demand has seen a recovery.
Deposits in Shanghai have also seen growth, with RMB deposits increasing by 6.1% year-on-year, driven by factors such as falling market interest rates and weak expectations.
The scale of social financing in the city increased by 603.6 billion yuan in the first three quarters, with RMB loans issued to the real economy increasing significantly and equity financing also on the rise. Real estate credit in Shanghai has remained stable, with reductions in interest rates for first-home loans and a generally stabilized real estate credit operation.
Overall, Shanghai’s financing costs have seen a decline, with credit growth rebounding and various deposits maintaining growth. The city’s financial sector looks to be in a stable position moving forward.
(Editors: Yan Yuan, Xuan Zhaoqiang)
(Trainee reporter Liu Huiyu)