Borrowing costs for individuals and SMEs surge

The recent three interest-rate hikes since October 20 only lifted the one-year lending rate by 75 basis points to 6.06% on February 9, having remained unchanged at 5.31% since December 23, 2008. However, according to our observations recently, China's borrowers - especially individuals and small and medium-sized enterprises (SMEs) - have been hit by increased borrowing costs that are greater than the magnitude of the official hikes.

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