Mobius raises prospect of interest rates cut

China will do whatever it takes to reach its economic growth target of 7.5 percent this year, according to Mark Mobius, the executive chairman of Templeton Emerging Markets Group.

There is a good chance the Chinese government will cut interest rates again this year, Mobius said at a news conference in Kuala Lumpur. The current stock market decline in Shanghai is due to sentiment, he said.

Even 7 percent growth is very high growth for China, and the stock market will improve again once investors realize growth is high, he said.

Agencies