Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

China Banks to Stay Disciplined on Loan Pricing, Daiwa’s Wu Says

Chinese banks will undertake more “disciplined” loan pricing as smaller lenders’ capital constraints keep them from offering deeper discounts on credit, Daiwa Capital Markets said.

The People’s Bank of China in July began to allow lending at 30 percent less than officially set rates in an effort to revive growth amid six straight quarters of economic slowdown. China’s biggest banks are limiting discounts for their best corporate clients to 10 percent of the benchmark, officials at the top four lenders told Bloomberg News.

“Smaller banks are not in a position to compete given their capital shortage, provisioning pressures, and deposit constraints,” Hong Kong-based Grace Wu wrote in a note dated Oct. 11.

A squeeze on net interest margins, a measure of lending profitability, from the liberalization of interest rates may not be as bad as some investors expect because less than 10 percent of new loans this year are priced at a discount, she wrote.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.