In the first three quarters of the year, Beijing witnessed a steady increase in its total credit supply, with 1.02 trillion yuan (US$139.13 billion) in new loans issued, surpassing the previous year by 222.7 billion yuan.

At the same time, the financing cost for the real economy in Beijing declined. The introduction of policies aimed at reducing interest rates on first-home mortgages resulted in a weighted average interest rate of 4.44% for individual housing loans by the end of September, marking the lowest level in nearly five years. This also represented a significant decrease of 23 and 25 basis points compared to the beginning of the year and the same period last year, respectively.

Since January, banks operating within Beijing have consistently increased support for the real economy. At the end of September, Beijing's yuan-dominated outstanding loans had increased by 12.4% year on year, surpassing the growth rates observed at the end of June and the same period last year by 1.3 and 3.2 percentage points, respectively.

"When looking at interest rates, the financing costs for businesses of the real economy continue to decrease and the interest burden on residents steadily lowers," explained Zhou Dan, an official of the Beijing Municipal Branch of the People's Bank of China.

In the first three quarters of this year, both the one-year and five-year loan prime rates (LPR) decreased by 20 and 10 basis points, respectively, further pushing down corporate loan interest rates. In September, financial institutions in Beijing issued new corporate loans with a weighted average interest rate of 3.12%, marking an 11-basis-point decrease compared to the same period last year. Additionally, the average interest rate for new inclusive loans to micro and small enterprises was 4%, a decrease of 30 basis points compared to the same period last year.

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