The People's Bank of China (PBOC) cut its one-year lending rate by 25 basis points to 5.1% on Sunday. It lowered the benchmark deposit rate by 25 basis points to 2.25%. It was third interest rate cut in six months.

China's central bank noted that the country's economy is still facing "relatively big downward pressure".

"At the same time, the overall level of domestic prices remains low, and real interest rates are still higher than the historical average," the central bank added.