In China, there has been no change in the 1 and 5-year loan prime rates (LPR) that serve as benchmark interest rates. The China National Interbank Funding Center reported that the 1-year credit interest rate remained at 3.1 percent, while the 5-year credit interest rate was held steady at 3.6 percent. The LPR, determined based on the markup over the borrowing interest rate set by the People’s Bank of China (PBoC) for 18 banks in China, has been functioning as the country’s benchmark interest rate since 2019. The 1-year loan interest rate is considered as a reference for corporate loans, while the 5-year interest rate is used for real estate loans. THREE INTEREST RATE CUTS WERE MADE As part of the policy measures by the People’s Bank of China to stimulate economic growth, three interest rate cuts were implemented in 2024. In February 2024, the 5-year loan interest rate, which serves as reference for real estate loans to revive the crisis-hit real estate sector, was lowered from 4.20 percent to 3.95 percent, while the 1-year interest rate was kept at 3.45 percent. In July 2024, there were cuts in both loan interest rates, with the 1-year interest rate dropping from 3.45 percent to 3.35 percent, and the 5-year loan interest rate being reduced from 3.95 percent to 3.85 percent. In October 2024, there was another reduction in loan interest rates, with the 1-year loan interest rate being decreased from 3.35 percent to 3.1 percent and the 5-year loan interest rate being lowered from 3.85 percent to 3.6 percent.