Interest rate hike impacts China´s financial and property markets

China's central bank increased the interest rate last week, for the third time in the first half of this year. It also slashed withholding tax on interest income to 5 percent from 20 percent. How the actions will impact both the real estate sector and the insurance industry.Yin Zhongli, deputy director of Research Center of Financial Markets, CASS said: "The interest rate appreciation will increase the cost to people of property purchases, so it can help prevent speculation in real estate. Meanwhile, a lowering of the interest tax rate will enable consumers to keep their deposits in the banks."