PBOC cuts reserve requirement ratio

|About: iShares China Large-Cap ETF (FXI)|By:, SA News Editor

Looking to further stimulate the economy, the People's Bank of China is reducing the amount of funds banks have to hold in reserve as the trade war drags on.

Effective September 16, the reserve requirement ratio will be cut by 50 bps and it would further reduce that ratio by 100 basis points for some qualified banks.

The move was the third action of its kind this year and the seventh since early 2008, releasing another 900B yuan ($126.35B) of liquidity into the world’s second-largest economy.

The Shanghai Composite closed up 0.5% at 2,999 ahead of the news.

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