More Chinese banks eligible for reserve ratio cut

|By:, SA News Editor

China's bank sector (CHIX) was boosted overnight after a number of midsize banks won inclusion into a PBOC move to cut reserve ratios - now a larger program than analysts expected when the central bank unveiled it last week.

For the PBOC's part, it says the action isn't an expansion of the reserve ratio cut, but that any company is eligible for eased ratios as long as a significant portion of boosted lending goes to agricultural and smaller companies.

Shanghai closed higher by 0.75%.

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