Latest monthly China Loan Prime Rate (LPR)....>

CHINA: Latest monthly China Loan Prime Rate (LPR) fixing due at the bottom of

the hour.

- 15 of the 19 surveyed by BBG expect the 1-Year LPR to fix 20bp lower at 3.85%

today, in the wake of the 20bp cuts for the rates applied to the 1-Year MLF &

7-Day reverse repo rate in recent weeks. Officials continue to focus on feeding

looser lending conditions through to the real economy, with SMEs continuing to

lag larger firms re: output resumption as the country attempts to re-open, with

employees in the sector being subjected to wider layoffs than at larger firms,

per various reports/surveys.

- 10 of the 15 surveyed by BBG look for a 10bp cut to the 5-Year LPR, to 4.65%.

The 5-Year LPR has lagged the 1-Year LPR, in terms of fixing lower, since the

PBoC reformed its interest rate system, which is likely linked to window

guidance from the PBoC as policymakers remain wary of speculative activity in

the housing space (mortgage pricing is linked to the 5-Year LPR), and remain of

the view that houses are for living in, not for speculation.