China's central bank is preparing a new approach in global monetary policy by arranging to short sell bonds, a tactic commonly used by hedge funds. This move aims to cool a debt-buying frenzy and prevent a bubble. Concurrently, China's commercial banks, especially smaller lenders, have been raising interest rates to attract deposits, defying regulators' efforts to lower them. Regulators have initiated a crackdown on these practices to discourage saving and spur spending and investment. Additionally, the central bank is inquiring into regional banks' bond investments as part of its efforts to manage the bond market. Analysts cited by Securities Daily report that China could still cut its loan prime rates in July.