This Year China is likely to cut its interest rates for the second time this year, by 0.6-0.8 percentage points at the end of the third quarter or early in the fourth quarter, a report published yesterday said. The cut is expected to be made if inflation is under control, the China Daily Business Weekly said, quoting Xu Hongyuan, deputy director of the economic forecasting department of the information center under the State Planning Commission. Mr. Xu said an inflation rate below the bank's interest rate could create room for the additional rate cut. Chinese investors are snapping up the country's 10-year treasury bonds, lured by the rare chance to earn compounded interest. The offer is the first 10-year notes since the early 1980s and the first to attach such an option.
Investors can reinvest coupon payments to receive compounded interest from the bond.
They will be issued until 11 July through the Shanghai and Shenzhen computer networks. Six different types of treasury bonds and bills have been offered this year, with maturities ranging from three months to 10 years. China plans to issue 195 billion yuan worth of debt during the year. China is planning three satellite launches starting in July. A second satellite, also made by Hughes, is scheduled to launch in late July or early August, while a Chinese-made satellite will be launched after October aboard a Long March 3A rocket, the newspaper said.