China reveals implementation plans for reforms

Interest rate liberalization to ensue.

According to BBVA, reinforcing expectations that China’s new leadership will press ahead with reforms, the State Council yesterday laid out plans for implementation during the rest of the year.

In addition to spurring private investment by streamlining the approvals process, the authorities emphasized their plans to press ahead with the reforms on the financial and fiscal fronts.

Here's more from BBVA:

The authorities vowed to push ahead with interest rate liberalization, increase the flexibility of the exchange rate, and further open the capital account by allowing individuals to invest overseas.

Regarding urbanization, the authorities pledged to reform the “Hukou” system (the rigid resident registry system) which should increase mobility to urban centers. The overall takeaway is a clear and welcome message of reform-oriented policies.