Shanghai may cut its borrowing costs by almost two percentage points as China allows local governments to sell bonds for the first time, helping policy makers reorganize 10.7 trillion yuan ($1.7 trillion) of debt.
The cost of locking in China’s interest rates for two years is falling at the fastest pace since 2008 as cash injections by the central bank add to signs monetary policy is being relaxed to support economic growth.
The U.S. Securities and Exchange Commission needs to improve oversight of firms exempt from certain regulations, the agency’s watchdog said, citing “numerous” cases in which companies violated conditions of the waivers.
China’s 10-year bonds declined, pushing their yield to the highest level in at least two months, after a government report showed the economy grew at a faster pace than economists estimated in the second quarter.
China’s interest-rate swaps climbed the most in more than two months on speculation the central bank will raise borrowing costs or increase the amount of cash banks must set aside as reserves to temper inflation.
Shanghai will announce tightening measures for the real estate market in the second half of the year, the Oriental Morning Post reported, citing Zhou Bo, head of Shanghai’s National Development and Reform Commission.