China cuts reserve requirement ratio by 0.5 percentage points

China's central bank on Friday announced a cut in the reserve requirement ratio (RRR) by 0.5 percentage points for financial institutions.

Starting Friday, the weighted average RRR for lenders will come to around 6.6 percent, while those having already implemented a 5 percent RRR will not be involved, according to a statement of the People's Bank of China.

The central bank adheres to a supportive monetary policy with a strengthened intensity and more targeted regulation to create a sound monetary and financial environment for stable economic growth and high-quality development, the statement said.

This RRR cut was first disclosed by central bank governor Pan Gongsheng at a press conference Tuesday. Pan said the RRR may be lowered further by 0.25 to 0.5 percentage points within the year depending on the liquidity situation.

It came as part of the country's recent stimulus package to boost the economy, which also includes measures to support the property sector and the capital market.