Chinese banks are slashing rates on consumer loans to record lows as policymakers ramp up stimulus to stabilize growth and counter US President Donald Trump’s tariffs.
Lenders across the wealthier areas of Shanghai, the nation’s financial capital, and Hangzhou, a key tech hub, are engaged in a price war, offering annual interest rates as low as 2.58% on loans to fuel restaurant visits and shopping, according to online ads. That compares to rates as high as 10% about two years ago.
Beijing is seeking to ignite consumer spending and stoke local demand to help make the long-struggling economy less reliant on trade and exports. The National Financial Regulatory Administration last week urged banks to expand the issuance of personal consumer loans while ensuring reasonable terms including credit limits and interest rates.