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

By ELAINE KURTENBACH
AP Business Writer

BANGKOK (AP) — China’s central bank plans to reduce the ratio of reserves banks must hold to help boost the slowing economy. Pan Gongsheng, governor of the People’s Bank of China, also said the government soon plans to issue a policy on lending to property developers to help support the industry. The news prompted a surge in share prices in Chinese markets, with Hong Kong’s benchmark jumping 3.6%. Pan said the deposit reserve requirement would be cut by 0.5% as of Feb. 5. Pan said that would inject about $141 billion into the economy. He said China’s economy is recovering, allowing ample room for policy maneuvers.