China's Central Bank Cuts Reserve Requirement to Boost Economy

The move, freeing up 1 trillion yuan, aims to stabilize volatile markets and support a fragile economic recovery.

China's central bank, the People's Bank of China (PBOC), is cutting the reserve requirement ratio (RRR) for all banks by 50 basis points, freeing up 1 trillion yuan ($139.45 billion) to the market.
The move is seen as an effort to support China's fragile economic recovery and stabilize the markets, which have been volatile due to the COVID-19 pandemic and a crisis in the property market.
Following the announcement, Chinese blue-chip stocks, which hit five-year lows earlier this week, bounced 1.8 per cent, and Hong Kong's benchmark index soared by 3.6 per cent.
The PBOC also plans to issue a policy soon on lending to property developers to help support the industry.
Despite the measures, some analysts believe more needs to be done to foster wider reforms and boost private sector confidence.