PBOC will provide CNY200B loan support for investment – Xinhua
|Following a meeting on Tuesday, China’s State Council announced that the People’s Bank of China (PBOC) will provide more than 200 billion yuan ($28.7 billion) in special lending funds to commercial banks to boost loans to companies, Xinhua News Agency reported.
Key quotes (via Bloomberg)
Banks were encouraged to lend to companies in manufacturing and services sector as well as small firms at an interest rate not higher than 3.2%.
Smaller companies will also be able to defer tax payment for another four months from this month, providing 440 billion yuan worth of tax breaks.
Meanwhile, Reuters reported that China's largest four state-owned banks cut deposit rates, effective Thursday.
Market reaction
AUD/USD is capitalizing on China’s effort to revive its economic recovery, adding 0.20% on the day to trade at 0.6760, at the press time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.