PBOC's Pan, speaking at the opening of the 2026 Financial Street Forum, said the
central bank will push reforms to loan-rate pricing benchmarks, shifting from
sole reliance on the LPR to a more diversified set of references. Once
alternative benchmarks are established, creditworthy corporates may, after
negotiation with lenders, choose the interbank overnight repo rate or the LPR as
the floating-rate loan reference; the LPR will continue to serve as the
benchmark for small-business and retail loans. Bond and financial-derivatives
pricing could also consider the interbank overnight repo rate as an option. The
PBOC said it will issue policy guidance when appropriate and continue reforming
the LPR quoting mechanism to improve quote quality.
