China's Beijing Region Reports 12.08 Trillion Yuan in Outstanding Loans by June End, with a Growth Rate of Nearly 10% over the Past Year

July 29th, Hexun Bank, Beijing Branch, and the State Administration of Foreign Exchange, Beijing Branch, held a press conference to release news on the third quarter of 2025.

Mr. Liu Qianguo, Deputy Director of the Statistical Department at the People's Bank of China, Beijing Branch, presented data onsite, revealing that by June end, outstanding loans in the Beijing region had reached 12.08 trillion yuan, with a year-on-year growth rate of 7.3%, which was 2.2 percentage points higher than at the end of the first quarter, and the highest in nearly 10 months.

Mr. Ye Huan, Deputy Director of the Foreign Exchange Management Department at the State Administration of Foreign Exchange, Beijing Branch, introduced that since the implementation of the pilot program for high-level opening up of cross-border trade one year ago, the main entities have been expanded in an orderly manner, and the structure has been continuously optimized, with business scale steadily increasing. As of now, 30 pilot banks in the Beijing region have provided more than 150,000 transactions in convenient services to quality enterprises, totaling over $176 billion.

Source: China People's Bank, Beijing Branch

Weighted Average Interest Rate of Loans to Enterprises in Beijing Region Decreases by 40 Basis Points Compared with Last Year

Mr. Liu Qianguo presented data on the first half of the year, which showed that all types of loans had been growing steadily. By June end, outstanding loans in the Beijing region had reached 12.08 trillion yuan, with a year-on-year growth rate of 7.3%, which was 2.2 percentage points higher than at the end of the first quarter and the highest in nearly 10 months. The outstanding loan balance for enterprise units increased by 9.4% compared to last year, and the weighted average interest rate decreased by 40 basis points.

Two is credit structure continues to be optimized. The People's Bank of China has been playing a dual role in monetary policy tools, guiding credit structure optimization. By June end, outstanding loans for microloans increased by 13.9%, and for the manufacturing industry, long-term loans increased by 15.3%.

Three is financing costs are at a low level. The People's Bank of China has strengthened its implementation and supervision of monetary policy, driving down social comprehensive financing costs in Beijing. By June, the weighted average interest rate for general loans was 3.29%, down 34 basis points from last year, while the weighted average interest rate for enterprise loans was 2.52%, down 40 basis points.

Four is all types of deposits continue to grow. By June end, outstanding deposits in the Beijing region had reached 25.54 trillion yuan, with a year-on-year growth rate of 2.4%, and an increase of 9,838 billion yuan from the beginning of the year.

Special Reverse Remittance Business for Goods Trade Exceeds Deadline is Exempted from Prior Registration

Since February 2024, the State Administration of Foreign Exchange has implemented the pilot program for high-level opening up of cross-border trade in Beijing, with the goal of serving the real economy.

Mr. Ye Huan introduced that the policy supports banks that have been registered by the State Administration of Foreign Exchange to provide convenient services to quality enterprises, including:

One is facilitating the collection and payment of foreign exchange funds for regular transactions.

Two is optimizing new international trade settlement methods. Banks can innovate financial services based on regional strategies and industry characteristics, and handle true and regular international trade settlements for quality enterprises.

Three is expanding the scope of settlement accounts. Quality enterprises and their foreign counterparties can settle accounts through specific scenarios such as general trade settlement accounts, transportation settlement accounts, etc., which helps to reduce exchange rate risks and enhance competitiveness.

Four is exempting special reverse remittance business for goods trade that exceeds the deadline from prior registration. Banks can directly handle this type of business for quality enterprises, without requiring them to register with the State Administration of Foreign Exchange in advance.