CXSE - China keeps LPR rate steady for 8th month amid signs of recovery

2023-04-20 00:41:46 ET

• The People's Bank of China left its key lending rates steady for the eighth straight month at April fixing, as the economic recovery has been relatively well on track after the withdrawal of most anti-COVID measures last December.

• The People’s Bank of China kept its loan prime rates for 1-year and 5-year loans at 3.65% and 4.3% respectively.

• The 1-year rate affects new loans, while the 5-year rate influences mortgages.

• The move came after the central bank earlier in the week held its medium-term policy rate at 2.75%. The board continued to bolster liquidity support for the economy as it rolled over maturing medium-term policy loans with higher cash offerings for the fifth month earlier in the month.

• China's economy grew 4.5% y/y in the first quarter of 2023, accelerating from a 2.9% gain in the fourth quarter, the strongest pace since the first quarter of 2022, and beating market estimates of 4%.

• China last cut both LPRs in August.

• ETFs: ( FXI ), ( KWEB ), ( CQQQ ), ( MCHI ), ( ASHR ), ( YINN ), ( TDF ), ( CHIQ ), ( GXC ), ( EWH ), ( KBA ), ( YANG ), ( CXSE ), ( CAF ), ( CWEB ), ( PGJ ), ( KURE ), ( CHIX ), ( CYB ).

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