“Interest rate reforms are part of a broader effort of China’s new leadership to steer the world’s second-largest economy towards a growth model that relies more on domestic consumption and gradually scale back controls and directives and allow market forces to play a greater role. The introduction of NCDs may have limited immediate impact, but the pilot is widely seen as a heralding the eventual dismantling of controls on bank deposits rates. The sources said that permission for NCDs will be expanded to other banks and non-banking institutions, paving the way for launching certificates of deposit for corporate and individual investors.”

http://www.reuters.com/article/2013/08/22/us-china-economy-reform-idUSBRE97L0EY20130822

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