China's Industrial Bank Says 1-Year Deposit Rate To Be Cut By 10 Basis Points To 1.75%, 2-Year Deposit Rate To Cut 20 Basis Points To 2%; China Top 100 Developers See August Sales -34% YoY
Portfolio Pulse from Happy Mohamed
China's Industrial Bank has announced a cut in its 1-year deposit rate by 10 basis points to 1.75% and a 20 basis point cut in its 2-year deposit rate to 2%. Additionally, China's top 100 developers have seen a 34% YoY decrease in sales in August.
August 31, 2023 | 2:54 pm
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The rate cuts by China's Industrial Bank and the decrease in sales by China's top developers could impact the iShares China Large-Cap ETF (FXI), which tracks the performance of large-cap Chinese equities.
The rate cuts by China's Industrial Bank could lead to lower profitability for the bank, which could negatively impact the value of FXI if the bank is a significant component of the ETF. Additionally, the decrease in sales among China's top developers could indicate a slowdown in China's real estate market, which could also negatively impact the value of FXI if these developers are a significant component of the ETF.
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