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A decline in Chinese economic activity could have global repercussions, denting revenues for suppliers of commodities and industrial components such as Australia, Brazil and Southeast Asia. Lower Chinese demand already has depressed prices for iron ore and other raw materials. Chinese leaders have promised to launch reforms aimed at making the economy more productive and helping entrepreneurs. But no major changes are expected until after a Communist Party meeting in the autumn. This month, the central bank and the bank regulator promised changes in the government-run banking industry, including possible creation of privately owned lenders, to increase credit to entrepreneurs and more productive companies. It gave no timetable. Last week, the central bank lifted controls on interest rates Chinese banks can charge on loans. Analysts said that might lead to lower borrowing costs for private companies but they said there should be little short-term change in the heavily regulated financial system. ___ Online: HSBC Corp.: http://www.hsbc.com/
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