Recently, three banks have landed the country's first three DR-priced loans in Hainan. Specifically, the three banks, the Hainan Branch of the Industrial and Commercial Bank, the Haikou Branch of China Merchants Bank, and the Haikou Branch of SPD Bank, took the initiative to explore innovative applications of DR benchmark interest rate loans based on advantages such as the gathering of cross-border operators at the Hainan Free Trade Port, a mature EF account system, and rich financial opening scenarios, and landed the first three DR benchmark interest rate loans in the country at the Hainan Free Trade Port. Currently, interest rates on loans from banks in China are mainly based on LPR. However, the current trial of the three banks is seen as a new possibility, providing a sample of Hainan that can be replicated and promoted for deepening interest rate marketization reforms. “DR is a transaction-forming interest rate, which is different from LPR's quoted interest rate.” An industry insider explained to reporters. DR relies on mass market transaction generation, making it difficult for a single entity to intervene, and the degree of marketization is higher. This also means that the loan interest rate pricing mechanism is shifting from a quotation type to a transaction type.

Recently, three banks have landed the country's first three DR-priced loans in Hainan. Specifically, the three banks, the Hainan Branch of the Industrial and Commercial Bank, the Haikou Branch of China Merchants Bank, and the Haikou Branch of SPD Bank, took the initiative to explore innovative applications of DR benchmark interest rate loans based on advantages such as the gathering of cross-border operators at the Hainan Free Trade Port, a mature EF account system, and rich financial opening scenarios, and landed the first three DR benchmark interest rate loans in the country at the Hainan Free Trade Port. Currently, interest rates on loans from banks in China are mainly based on LPR. However, the current trial of the three banks is seen as a new possibility, providing a sample of Hainan that can be replicated and promoted for deepening interest rate marketization reforms. “DR is a transaction-forming interest rate, which is different from LPR's quoted interest rate.” An industry insider explained to reporters. DR relies on mass market transaction generation, making it difficult for a single entity to intervene, and the degree of marketization is higher. This also means that the loan interest rate pricing mechanism is shifting from a quotation type to a transaction type.