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Combining the market rate and...........>

CHINA PRESS
CHINA PRESS: Combining the market rate and benchmark rate is an imminent problem
in interest rate liberalization reform, and regulators need to watch out for the
potential impact of a too-quickly rising deposit rate and a large withdrawal of
wealth management products, reported China Securities Journal on Thursday.
Interest rate liberalization will proceed more smoothly when there is abundant
funding, which could prevent banks from competing for deposits by significantly
raising their deposit rates, the report said, citing Pan Xiangdong, the chief
economist at New Times Securities. In addition, the benchmark rate and market
rate should only be combined when the difference between the two is reasonably
small, the report said, citing Pan.

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