PBOC to set up deposit insurance scheme - vice governor

FXstreet.com (Barcelona) - The Shanghai market is trading with a strong bullish momentum in the early going, with some reporters attributing the latest upmove to People’s Bank of China (PBOC) plans to introduce deposit insurance system as soon as possible.

As Reuters notes, "the move seen as paving the way for the liberalisation of deposit rates." The news outlet cited PBOC vice governor Yi Gang on Xinhua news agency late on Tuesday, saying "Related departments are busy drawing up the plans and we will lose no time in launching the deposit insurance system."

Reuters also referred to comments by Hu Xiaolian, another vice governor of the central bank, who emphasized the idea of speeding up the new scheme towards market-based interest rate reforms.