China Lawmakers Approve Interest Tax Cut, Bond Plans

-Central bank will sell $200 bond to government bond investors, including financial institutions -Elimnatining or cutting interest income taxes, introduced in 1999 by NPC to encourage consumption, will raise the real interest rate on deposits, shfiting money from overheated stock market. -now 1y deposite rate is 3.07%, lower than 3.4% inflation rate. -two more rates hikes of 27 bps each are expected if real interest tax is cut to 10%.