PBOC cuts reserve ratios for certain banks

|By:, SA News Editor

China's central bank on June 16 will cut the reserve ratio by 50 basis points for some banks focusing on lending to the rural sector and smaller companies, with the move also applying to financial leasing and auto financing firms.

The action follows a promise two months ago by the State Council to take action to boost economic growth.

In other news, land sales plunged in May, with 1,767 deals over 300 surveyed cities down 45% from a year ago and 19% from April. May is traditionally a big month for sales, but developers, says real estate website Soufun, are in "wait-and-see" mode.

Property developer stocks (TAO) slipped in Hong Kong (EWH) overnight, including Poly Property off 7.7%, Shimao Property down 4.3%, and Fantasia Holdings off 2.3%.

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