Rate Cuts, Bond Sales Likely In H2

China will likely cut interest rates and increase sales of central government bonds in H2 to boost the economy, but it must remain vigilant against breaching risk regulatory principles and the legal framework, said Xiaojing Zhang, dean at the Institute of Economics of the Chinese Academy of Social Sciences. There is a great chance for rate cuts, including adjustments to rates of outstanding loans, said Zhang. Central government bond issuance can help repair the balance sheets of enterprises, residents and local governments, but such debt expansion and the arrangement of uses need to go through legal procedures, said Zhang. (Source: 21st Century Business Herald)