Finally, a substantial policy change from the Chinese government: a surprise cut in interest rates on Monday.
The People’s Bank of China, the country's central bank, surprised the markets by lowering a key short-term policy rate earlier on Monday.
The one-year loan prime rate (LPR) was lowered by 10 basis points (0.10%) to 3.35% from 3.45%, while the five-year LPR was reduced by the same margin to 3.85% from 3.95%.
Both are new record lows and are aimed at supporting the struggling property sector and businesses facing weak consumer demand.
Most economists surveyed had expected no change.
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.
