(Yicai) Sept. 27 -- China's financing costs slumped in the third quarter since the loan prime rate reform, according to the central bank.

The cost of total social financing, a broad measure of credit and liquidity in the economy, decreased significantly while the market-oriented adjustment mechanism of deposit interest rates and monetary policy became more efficient, the People’s Bank of China said in its third-quarter policy meeting. The words were almost similar to the previous meeting.

The LPR reform in August changed the way the key rate is calculated, aiming to increase the importance of the benchmark for corporate loans and mortgages as a more universal reference rate among banks.

The central bank said something new too. The PBOC will “make a greater effort to implement issued monetary policies, ensure the issuance of improved central bank lending and discount quota, and make good use of existing structural monetary policy tools.”

It will "focus on boosting domestic demand and confidence" instead of working to "support to boost domestic demand and improve consumption environment." Something that the third-quarter statement omitted was a promise to "spare no effort to stabilize growth, employment, and prices of commodities." This time, the PBOC said it will "maintain the prices of commodities at a reasonable level" compared with an earlier pledge to “pay attention to changes in the prices of commodities and maintain the prices basically stable.”

The PBOC kept a similar line on the foreign exchange market. “The supply and demand in the FX market are basically balanced, the current account continues to maintain a stable surplus, foreign exchange reserves are sufficient, and the yuan's exchange rate floats both ways, stays largely stable at a reasonable and balanced level, and plays the role of a macroeconomic stabilizer.”

The regulator's property market nudge will focus more on loan rates. The PBOC will "promote the stable and healthy development of the real estate market and advance the establishment of a new development pattern." However, the financial regulator no longer said it intends to "ensure timely delivery of presold homes" but said that it will “implement a new dynamic adjustment mechanism for first-home loan rates, lower the percentage of down payment, reduce the limit for second-home loan interest rates, and promote the implementation of a policy to cut existing first-home loan interest rates.”

The PBOC relaxed its stance on platform companies. It said it would implement financial policies to promote the regulated, healthy, and sustainable development of platform firms instead of guiding these companies to develop their finance business in a standardized way while hiking regulation on their financial activities.

Editor: Emmi Laine