Reported Earlier, People's Bank of China Loan Prime Rate 3.35% Vs. 3.45% Est.; 3.45% Prior
Portfolio Pulse from Benzinga Newsdesk
The People's Bank of China has lowered its Loan Prime Rate to 3.35%, down from the previous 3.45% and below the estimated 3.45%.
July 22, 2024 | 4:19 am
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POSITIVE IMPACT
The People's Bank of China has reduced its Loan Prime Rate to 3.35%, which is lower than the previous rate of 3.45% and the estimated 3.45%. This could positively impact the iShares China Large-Cap ETF (FXI) as lower interest rates may stimulate economic activity in China.
Lower interest rates generally stimulate economic activity by making borrowing cheaper, which can lead to increased investment and consumption. This is likely to benefit large-cap Chinese companies, which are the primary holdings of the FXI ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80