China cuts reserve requirements for bank to help boost its slowing economy

BANGKOK (AP) — China’s central bank has announced it will reduce the ratio of reserves banks must hold to help boost the slowing economy. The announcement by the People’s Bank of China prompted a surge in share prices in Chinese markets, with Hong Kong’s benchmark jumping 3.6%. Central bank Gov. Pan Gongsheng said the deposit reserve requirement would be cut by 0.5% as of Feb. 5. Pan said that would inject about 1 trillion yuan ($141 billion) into the economy. He told reporters in Beijing that the central bank soon plans to issue a policy on lending to property developers to help support the industry.