China's central bank has set a ceiling on the interest rates on high-yield structured deposits in an effort to reduce fundraising costs for banks and hopefully to translate to lower corporate borrowing costs, Reuters reported Jan. 17, citing three sources familiar with the matter.

The People's Bank of China instructed banks to not set guaranteed rates on structured deposits at more than 150% of the rates on term deposits of the same maturity, two unnamed sources in Shanghai told Reuters.

The curbs are nationwide, although the exact rates may vary slightly by region, one of the sources said.

The central bank did not immediately reply to requests for comment, Reuters added.