China cuts bank reserve requirements


China's central bank is to cut its bank reserve requirement ratio by one percentage point.

The People's Bank of China said that the new reserve requirement would take effect from today.

The aim is to stimulate more lending into the nation's slowing economy.

The move allows banks to lend out more money, with Chinese state media saying the cut will release 194 billion dollars into the world's second-largest economy.

China's economy grew by 7% in the first quarter of the year, a large figure by Western standards, but the lowest for the country since the financial crisis of 2009.