China Took An Important Step Towards Liberalizing Interest Rates This Weekend

The People's Bank of China officially announced the inter-bank negotiable certificate of deposits (CDs) on Saturday. The interest rate on these CDs will be determined by the market. These certificates of deposit "can help banks secure a more stable funding source and offer liquid and safer  underlying securities for investment products targeting individual investors," writes Societe Generale's Wei Yao.  Individuals, governments, and non-financial companies can't jump into this market just yet,...