China Banks to Cut Mortgage, Deposit Rates in Stimulus Bid
- China’s state banks are being enlisted to support economy
- Beijing has struggled to boost growth, investor confidence
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China’s largest banks are preparing to cut interest rates on existing mortgages and deposits, the latest state-directed measures to shore up growth in the world’s second-largest economy.
The big state-owned lenders are working on reducing rates on the majority of the nation’s 38.6 trillion yuan ($5.3 trillion) of outstanding mortgages, according to people familiar with the matter. The reductions will only affect loans on first homes, two of the people said.