China's central bank lowers amount some banks must hold
The PBOC cut the required reserve ratio for some banks on Sunday by 50 basis points in a move to boost lending to smaller firms.
A cut isn't as surprise after comments from the state council last week hinted at more central bank moves and is the third time reserves were lowered this year. However, it's an especially large move with the central bank saying it will add $107.65 billion in liquidity, more than the roughly $60 billion expected.
The cut applies mostly to the country's five largest state banks along with 12 commercial banks who were encouraged to swap out company debt owed to them for equity.
The Shanghai Composite fell to an 11-month low on Friday ahead of the news.
