The raise of RMB interest rates has had little impact on the operation and
financing of Taiwan-funded companies on the mainland, said a central government
spokesman at a press briefing here Wednesday.
China's central bank raised both lending and deposit interest rates 0.27
percentage points on Oct. 29. It also broadened the floating degree of the
lending interest rate of RMB and allowed the RMB deposit interest rate to float
downward.
"The rise of RMB interest rate will benefit the sound development of its
national economy, which will provide a better environment for Taiwan-invested
enterprises," said Li Weiyi, spokesman for the Taiwan Affairs Office under the
State Council.
He pointed out that the adjusting of interest rate slightly raised financial
costs for enterprises. Those Taiwan-invested enterprises with good credit will
continue to get low-cost loans from banks.
Beginning January 1, the Chinese mainland financial institutions will stop
the practice of determining lending rates according to the size of business.
This will enable small and medium-sized Taiwan-funded companies not to pay extra
more financial cost for the rise of interest rates, he said.
