China Financial News Headlines

Introduction:
The central bank decided to lower 0.5 percentage points RMB deposit reserve rate for deposit financial institutions from October 15, and reduced one-year RMB deposit and loan benchmark interest rates by 0.27 percentage points respectively from October 9, so the deposit and loan of other grades would be adjusted accordingly.

Tax Reduction and Tax Free squeezed Profit Margin, Insurance Performance would reduce
After the deposit and loan interest rates reduction and interest tax exemption, the industry believed that the rate cut would not relieve the capital cost pressure of insurance guarantee slip, but the bond yield would be reduced greatly, so the income space from reinvestment of insurance companies would be cut down.

Real Estate: Impact on the Industry from the Interest Rate Reduction
The reduction of interest rate makes people relieve 1.18%-2.59% loan interest rate, so the ability of purchasing houses will be increased 1.96%. To the developers, they have more prediction on loosening credit and loan.

Reduction of Interest Rate Stimulates the Consumption
The central bank again to rescue the market and reduce the interest rate, so the reduction of interest rate stimulates the consumption.

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