Industrial Bank (IDCBF.PK) dove 4.5% in Hong Kong trade last night after the PBOC rate cut...

|About: Industrial and Commercia... (IDCBF)|By:, SA News Editor

Industrial Bank (IDCBF.PK) dove 4.5% in Hong Kong trade last night after the PBOC rate cut included allowing banks to offer a 20% discount to the benchmark lending rate. Chinese banks have benefited from state-set lending and deposit rates which guaranteed them a chunky margin. Liberalization is a good thing, but true competition is sure to crimp profits.