Bangkok, Jul 25 (AP) China ratcheted up its effort to reinvigorate its economy Thursday by cutting a key policy rate and interest paid on bank deposits.

The move coincided with a downturn in world stocks, extending losses in Chinese markets that have declined this year while share prices soared in many other countries.

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By midday, Hong Kong's Hang Seng was down 1.4% and the Shanghai Composite index lost 0.4%.

The People's Bank of China said it cut the lending rate for one-year medium term policy loans by 20 basis points to 2.3%. The rate on 7-day loans was reduced to 1.7%. Major state-run banks cut deposit rates to relieve pressure on their finances.

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Earlier this week, the central bank cut several other lending rates, sticking to a cautious approach to stimulating the economy. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)