China Cuts Lending and Deposit Rates     

The People's Bank of China cuts both lending and deposit currency rates. The one-year benchmark lending rate dropped to 6.93% and the one-year deposit rate is now 3.87%, both down 0.27 percentage points, effective October 9th, 2008.
   The Bank also cuts the RMB deposit - reserve requirement ratio by 0.5 percentage point to 16% for joint venture banks and 17% for the country's big five state-owned banks - ICBC, BOC, the Agricultural Bank of China, China Construction Bank and the Bank of Communications, from existing 16.5% or 17.5%, effective October 15th, 2008. (CCR2008 No. 27)
   The moves are to loose liquidity pressures of domestic enterprises facing the slowdown demand worldwide and encourage investment.
   Chemical watchdogs express this measure is developed for chemical players to raise their profit-making abilities.
   China's GDP growth has showed a downward trend for two consecutive months. The government is taking measures to lessen the negative impact by the global credit crisis and promote the economy to grow, according to the vice-minister of the National Development and Reform Commission.
   Local small - and medium - firms hope the government to cut tax burden, make more credit available and ensure a sufficient supply of land and power for their operations.