China's central bank reduced its interest rate for one-year loans to commercial banks to 2.3 percent, from 2.5 percent, the biggest cut since April 2020. This move aims to guide commercial banks on interest rates for loans, affecting corporate and local government financing units.
The Chinese government's intervention in stock markets may have influenced the relatively smaller decrease in share prices in Shanghai and Shenzhen compared to other Asian markets. Many local government financial units are facing debt issues leading to salary cuts for civil servants.
Collection
[
|
...
]