China to lower firms' financing costs, cut tax burden

[BEIJING] China's State Council, or cabinet, issued guidance on effectively lowering firms'financing costs, the latest move to cushion an economic slowdown in the world's second-largest economy.

The cabinet said it would maintain ample liquidity in the banking system while keeping an appropriate monetary and financial environment, according to a statement published on a government website.

It added that the government aims to reduce the annual tax burden on firms by more than 500 billion yuan (S$101 billion) within the next one to two years.

REUTERS