China to lower firms' financing costs, cut tax burden

BEIJING (Reuters) - 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.

($1 = 6.6525 Chinese yuan)

(Reporting By Beijing Monitoring Desk; Editing by Jacqueline Wong)