PBOC data show May new corporate loans (domestic and foreign‑currency) had a
weighted‑average rate of about 3.0%, roughly 25bp lower YoY. Since H2 2018
authorities have cut the reserve requirement ratio 18 times, supplying ongoing
medium‑ to long‑term liquidity; benchmark policy rates have been cut 10 times
over the same period, totaling 115bp. Experts say measures including rectifying
banks' illegal manual interest top‑ups and guiding non‑bank interbank demand
deposit rates to track policy rates have improved transmission and support
banks' net interest margins. Overall, policy‑rate transmission is effective and
loan rates are stable-to-declining at low levels.