Finance, export, real estate, the bankruptcy of Lehman Brothers brought shocks in all aspects to China which is across the ocean. Reporters Yang Lei, He Liu, and Su Xiao of the International Herald Tribune reported from New York and Hong Kong that just a few hours after Lehman Brothers announced its application for bankruptcy protection, the People's Bank of China (PBOC) stated that it would reduce the benchmark one-year RMB loan interest rate by 27 basis points starting September 16, and reduce the RMB deposit reserve ratio for small and medium-sized financial institutions starting September 25.
This was the first interest rate cut by the PBOC in over six years. Overseas media, in addition to being surprised, widely viewed this as China's response to the financial turmoil triggered by Lehman's bankruptcy.