(Yicai) April 29 -- Total social financing in Shanghai grew at a faster pace than a year earlier in the first quarter, while corporate financing costs plunged to a historic low in March, better meeting the financing needs of the real economy.

Shanghai's total social financing increased by CNY474.3 billion (USD69.4 billion) in the three months ended March 31 from the beginning of the year, CNY13.8 billion (USD2 billion) more than a year earlier, according to data released by the Shanghai Head Office of the People's Bank of China yesterday.

This year, Shanghai has accelerated reforms to enhance transparency in corporate financing costs. Financial institutions are now required to disclose their financing rate, including both interest and non-interest expenses, when providing loans to businesses to help them secure lower-cost financing solutions. Twenty-three banks in Shanghai are participating in this reform.

As a result, the weighted average interest rate for newly issued corporate loans in Shanghai dropped to 2.63 percent in March from 2.85 percent a year earlier, marking a historic low. For small and micro-enterprise loans, the weighted average interest rate was 2.87 percent, down from 3.17 percent, according to the PBOC data.

In addition to reducing financing costs, Shanghai has also optimized its credit structure, with a stronger focus on supporting technological innovation, small and micro enterprises, and cross-border financing.

As of March 31, the balance of domestic and foreign currency loans in Shanghai reached CNY13.5 trillion (USD2 trillion), up 6 percent from a year ago, data from the PBOC also showed. Among them, loans for the information technology and scientific research service sectors surged 41 percent and 28 percent, respectively, while those to small and micro enterprises rose 13 percent. The city's offshore loan balance increased 22 percent.

Shanghai's savings scale is also growing rapidly. The balance of domestic and foreign currency deposits in Shanghai reached CNY24.9 trillion (USD3.6 trillion) at the end of the first quarter, a 13 percent increase from a year earlier, per the PBOC data. Among them, household deposits grew 8 percent, and non-financial corporate deposits expanded 6 percent.

Editors: Dou Shicong, Futura Costaglione