China May Further Reduce Borrowing Costs: Daily

China may seek to further reduce borrowing costs by guiding loan rates lower, cutting service charges and implementing discounted credit policies, the Securities Daily reported citing the Caixin Research Institute. Policymakers may also increase funding support to manufacturing and small business while preventing the flow of funds to property and financial markets, the Daily reported citing Caixin. Liquidity in October may be under pressure given government bond supply and less fiscal expenditures, so the PBOC may increase OMO operations, renew MLFs in excess or even lower RRRs, the newspaper said citing analyst Ming Ming from CITIC Securities.