The reported move would reduce reliance on the official lending benchmark and could reshape how credit is priced in the world’s second-largest economy if adopted more broadly.
Three major Chinese banks are reportedly moving new loan pricing to interbank rates instead of the official lending benchmark, a change that could alter how borrowing costs are set across China’s financial system. If sustained, the shift would mark a significant change in credit pricing mechanics in the world’s second-largest economy, with loan rates tied more directly to funding conditions in the interbank market rather than an official reference rate.