2023-08-21 17:42:57
China’s stocks fell sharply on Monday. The main reason was an interest rate hike by commercial banks, which was significantly lower than most observers had expected. US investment bank Goldman Sachs lowered its expectations for Chinese stocks. The tense situation on the real estate market in the People’s Republic kept the international financial markets in suspense for another day. A number of large corporations are in serious difficulties and have not made payments.
Gustave parts
Economic correspondent for China based in Shanghai.
After the Chinese central bank surprisingly cut interest rates last week, analysts had expected commercial banks to take a similar step. The interest rate for one-year loans has now been reduced by only 0.1 percentage points to 3.45 percent, and for five-year loans it has remained at 4.2 percent. Analysts had expected both to fall by 0.15 percent. The so-called “Loan Prime Rate” is calculated from the average of 18 banks. These are interest rates for the most creditworthy customers.
#China #real #estate #crisis #control