The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

An employee counts Chinese 100 yuan banknotes at a branch of Bank of Communications in Shenyang, Liaoning province in this July 6, 2012 file picture. China's central bank announced long-awaited interest rate reforms on July 19, 2013, scrapping the previous floor on the rates that banks charge clients for loans.
An employee counts Chinese 100 yuan banknotes at a branch of Bank of Communications in Shenyang, Liaoning province in this July 6, 2012 file picture. China's central bank announced long-awaited interest rate reforms on July 19, 2013, scrapping the previous floor on the rates that banks charge clients for loans.
(Sheng Li/Reuters)

SCOTT BARLOW

The China banking policy change that will transform the nation

ROB Insight is a premium commentary product offering rapid analysis of business and economic news, corporate strategy and policy, published throughout the business day. Visit the ROB Insight homepage for analysis available only to subscribers.

The People’s Bank of China made a bold step towards overhauling China’s financial system Friday by announcing the end of government-determined lending rates. Buried within the accompanying statement, however, are hints that far more wide-reaching, transformational changes – ones with major implications for Canadian investors – may be on the immediate horizon.