Overnight China’s Central Bank surprised markets with a 25 basis point rate cut for 1 year deposits as well as the 1 year lending rate cut of 40 basis points.

China (FXI, quote) has not made any adjustments to its benchmark rates for 29 months; the last adjustment was back in July of 2012.

Move to 1 yeas deposits to 2.75% as well as the lending rate to 5.6% comes on the heels of China’s economy showing clear signs of slowing. The rate cuts we hopefully spark growth and reduce recent pressure on the GDP.

China’s recent GDP was 7.3% y/y its slowest growth since 2009. A clear slop down is indicated by looking at 7.5 % in Q2 and 7.4 % in Q1.

The news has sent the iShares China Large-Cap ETF or FXI soaring by 3.5% in pre-market.