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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (428)	1/4/1998 12:21:00 PM
From: Tony van Werkhooven	Read Replies (1) \| Respond to of 9980

Re. the "flip-flop" of China's interest rates. If I recall correctly, one of the reasons for backing off the reduction was that the reduction had a retroactive feature which would have create great difficulty for the banks to implement. Based on my reading in the South China Morning Post, the central bank is still committed to lower rates in order to encourage economic growth and try to absorb some of the dislocations resulting from planned economic restructuring of the state sector.