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China bank ratio cut draws mixed reactions

Bankers hail move, but firms hoping it'll mean more and cheaper loans could be disappointed

BANKING ON CASH: The People's Bank of China's move to cut banks' reserve requirement ratios by 50 basis points will free up an estimated 600 billion yuan into the money supply.


CHINESE bankers welcomed Beijing's decision to cut the level of reserves they must hold, hoping they can put the freed-up cash to profitable use, but struggling Chinese companies hoping it will mean more and cheaper loans are likely to be disappointed.

After a slew of...

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