Reuters reporting on moves to direct svaings towards spending and investments other than bank deposits:
- Members of China's "interest rate self-regulatory mechanism," mostly banks, met this month and were urged to reduce deposit rates, according to two attendees and two other bank sources who were closely briefed on the meeting.
- China's central bank does not set bank rates directly but guides them through the market-based mechanism, which comprises banks big and small. The guidance comes as banks and the economy groan under the weight of huge inflows of savings and deposits.
- Other people familiar with the meeting said the mechanism asked for a roughly 10-basis-point cut to weighted average term deposit rates in the quarter from a year earlier, and some banks were urged to dial back high-yield deposit products.
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