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China's bid to energise a stuttering economy by cutting interest rates twice in a month and making it more attractive for banks to take risks on private sector borrowers is falling flat with the most country's most dynamic job generators -- smaller firms.

 

Twin moves to cut and deregulate interest rates have effectively chopped borrowing costs by up to 170 basis points, a potentially eye-popping squeeze on bank lending margins.

 

Still, that rate-reduction has not been nearly enough to tempt a dozen small factories and wholesalers around Beijing visited by Reuters in the wake of July's policy shift.