The Nikkei notes that "Chinese companies......>

CHINA: The Nikkei notes that "Chinese companies are hampering official efforts

to revive the economy during the coronavirus pandemic by borrowing from banks

and hoarding cash at higher interest rates instead of channeling it into their

businesses. China's central bank over the last two months has cut rates and

boosted liquidity to try to spur banks to lend to companies. While the latest

data shows that banks have done their part, companies facing an uncertain

economic outlook are not using the loans as Beijing would want. Instead many are

investing the borrowed money in short-term debt and deposits that, by using

derivatives, can yield more than twice the rate of their loan. With households

also holding back on consumption and boosting savings, analysts suggested that

regulators should cut deposit rates to reduce the incentives for such trades.

China's banks still use deposit rates set by the central bank and the rates have

not changed since 2015."