Investing.com - The People's Bank of China lowered the amount of cash banks are required to hold in a surprise move on Monday, as Beijing steps up efforts to support the economy.
The People's Bank of China reduced its reserve requirement ratio by 0.5% to 17.0%, effective March 1.
The Shanghai Composite tumbled nearly 3% on Monday to hit levels not seen since late 2014, after the country’s central bank guided the yuan lower, prompting fresh concerns over the world’s number-two economy.
At a weekend G20 meeting in Shanghai, PBOC head Zhou Xiaochuan tried to ease concerns that China’s economic strategy hinges on a weaker yuan, saying there is no basis for a persistent depreciation in the currency.
The moves by Beijing to weaken the yuan have prompted concerns over a China-led slowdown in global growth.