China May Further Cut Financing Costs in H2: Daily

China is likely to continue pushing for lower financing costs in H2, including rates of bank lending and companies' capital raising, even after it left the LPR unchanged on Monday, the 15th month that the benchmarks stayed at 3.85% for 1-year and 4.65% for 5-year, the Economic Information Daily said citing analyst Wang Qing of Golden Credit Rating. The broad cuts to banks' reserve ratios this month increased available capital, which may still lead to lower corporate loan rates later, Wang was cited saying. Policymakers may also have refrained from cutting rate after June's better-than-expected indicators showing manufacturing investment and consumption both improved, the newspaper said citing Wen Bin, chief economist with Minsheng Bank. The rising expectation of rate hike by the Federal Reserve may also have limited China, which seeks a more stable yuan, the newspaper cited Wen as saying.