The People’s Bank of China (PBoC) said reserve requirements for China’s five largest banks will rise by half a percentage point starting next week as it shifts its focus from growth to containing inflation and controlling liquidity, the Wall Street Journal reported. The reserve requirement ratio for Industrial and Commercial Bank of China (601398.SH, 1398.HK), Bank of China (601988.SH, 3988.HK), Agricultural Bank of China (601288.SH, 1288.HK), China Construction Bank (601939.SH, 0939.HK) and Bank of Communications (601328.SH, 3328.HK) will rise to 18%. The increase follows a 0.25 percentage point interest rate hike and a previous reserve requirement hike for six major banks in October. The PBoC announced the move shortly after China posted a US$27.15 billion trade surplus in October, its second-largest this year.
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