China Holds Loan Prime Rates for 17th Month: 3.0% One-Year, 3.5% Five-Year

China left its loan prime rates (LPR) unchanged in October. The one-year LPR stays at 3.0% and the five-year-plus at 3.5%, with no change since June 2025.

By FOCUS BUSINESS editorial staff

The LPR is the benchmark Chinese banks use when pricing new loans. It is published on the 20th of each month by the National Interbank Funding Center. The one-year rate is mainly a reference for corporate loans; the five-year-plus rate for mortgages.

This month’s announcement

The one-year LPR announced on Oct. 20 is 3.0% and the five-year-plus LPR is 3.5%. Both are unchanged from September. The rates have not moved since June 2025, making this the 17th consecutive month on hold.

What the hold signals

The People’s Bank of China has said that structural measures to stabilize growth and support the property market are already in place and that it is now observing their effect. The latest hold follows that stance. The LPR rarely moves without a change in policy rates, so the current level is likely to stay for some time.

Business Checkpoints

Korean companies with floating-rate yuan loans from Chinese banks should recheck how the rate is calculated in their contracts. Most use an “LPR plus spread” structure with set reset dates; while the LPR stays put, interest costs do not change either.

For new loans or extensions under negotiation, the spread the bank adds on top of the LPR matters more to actual funding cost than the LPR itself. Terms vary by bank and borrower, so confirm directly with your bank.

※ This article is based on the People’s Bank of China LPR announcement and Chinese and international media reports.