The Chinese city of Wenzhou started publishing a weekly index to track private lending rates in the city, the China Securities Journal reported today, citing the local government.
Borrowing costs were 21.4 percent for the week Nov. 26 to Nov. 30, according to the first “Wenzhou Index,” down 0.56 percentage point from the previous week, the newspaper reported.
Wenzhou, located in the eastern province of Zhejiang, is an export hub dominated by private companies where lending outside of the formal banking system is prevalent. The government in March announced a trial project in the city to ease funding for small companies and monitor underground financing.
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