China just made borrowing costs a tiny bit cheaper for companies

SHANGHAI: Loans will get a little cheaper for Chinese companies after officials introduced a revamped market benchmark rate for the first time.

China’s new one-year reference rate for bank loans will start at 4.25%, according to a statement from the central bank on Tuesday. That compares to the 4.24% median estimate in a Bloomberg survey of 11 traders and analysts. The previous loan prime rate was 4.31%, while the one-year benchmark lending rate is 4.35%. China will set the LPR on the 20th day of every month.