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China cabinet says to deepen interest rate reform: state radio

[BEIJING] China will deepen interest rate reform, including making better use of short-term repo and medium-term lending facilities, state radio reported on Wednesday, citing the State Council, the country's cabinet.

China will establish a financing guarantee fund to help small firms lower their borrowing costs, according to the broadcast, and accelerate reconstruction of so-called zombie firms.

The cabinet also said that the approval process for highway projects would be streamlined, state radio reported.

The People's Bank of China (PBOC) said on October 23 it was freeing the interest rate market by scrapping a ceiling on deposit rates, after cutting interest rates for the sixth time in less than a year.

Liberalising China's interest rates is a key element of financial reform, the country's central bank has said.