China’s major banks on Friday cut interest rates on yuan-denominated deposits for the second time this year, state media said, as the Chinese government seeks to shore up sluggish consumption.
According to official deposit rates announced by Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China and banks, the one-year fixed deposit interest rate was cut by 25 basis points to 1.1%. of communication.
This is the second reduction in deposit rates for major state-owned banks in 2024, with the previous reduction taking place in July.
Meanwhile, China’s central bank and financial regulators held meetings with major financial institutions, urging them to quickly implement expansive policies to support the economy and capital markets.
The People’s Bank of China (Central Bank) said in a statement posted on its website on Friday that it called on participants to strengthen credit support to the real economy and maintain reasonable growth in aggregate money and credit. .
It also called for reliable interest rate adjustment and two funding mechanisms created to support the stock market.
China’s banking and securities regulator also chaired the meeting, which was attended by banks, securities companies, fund companies and others.
Also on Friday, People’s Bank of China Governor Ban Gongsheng warned against illegal capital inflows into the stock market following recent measures to support domestic capital markets, state media reported.
The People’s Bank of China introduced two new tools to support the market in September.
These include swap programs, which give funds, insurance companies and brokers easier access to capital for stock purchases, and the relatively inexpensive People’s Bank, which helps banks finance stock purchases and buybacks in publicly traded companies. It was intended to provide financing.
Speaking at a financial forum in Beijing, Mr. Ban said the two measures were based entirely on market-oriented principles and that the swap facility was not a form of direct financial support from the central bank.
Pan added that the bank’s regulations on stock buybacks and purchases have a specific directional purpose, and the basic gist is that loan funds must not enter the stock market illegally. (Xinhua/News Agency)
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Last updated: 2024-10-18 Hong Kong time 11:10
