BEIJING : Shares in Chinese banks rose sharply on Monday after more lenders reduced interest rates on deposits, in a move that would boost margins and assist with Beijing's broader economic goals of increasing spending and credit demand.
Other major state-owned banks, including Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of Communications Co Ltd, were up more than 5 per cent. Beijing last month nudged banks to cut deposit interest rates further, sources said, in the latest effort to channel the country's vast savings pool into spending and more productive investments.
"Major banks are also benefiting from 'the market valuation system with Chinese characteristics'," he said, referring to a term proposed by top securities regulator Yi Huiman in November when he called for a new model to price state-owned enterprises .