China to lower firms' financing costs

China's State Council, or cabinet, issued guidance on effectively lowering firms' financing costs, the latest move to cushion an economic slowdown in the world's second-largest economy.

The cabinet said it would maintain ample liquidity in the banking system while keeping an appropriate monetary and financial environment, according to a statement published on a government website.

It added that the government aims to reduce the annual tax burden on firms by more than 500 billion yuan ($75.16 billion) within the next one to two years.