The People’s Bank of China (PBOC) has reduced its one-year loan prime rate (LPR) to 3.7% from 3.8%amid concerns of an economic downturn. In December, PBOC reduced the one-year loan prime rate for the first time since April 2020. China’s five-year LPR was also lowered by five basis points.
The rate cuts, which are aimed at reducing borrowing costs, caused Hong Kong’s Hang Seng index stocks to jump 3.42% to close at 24,952.35.
