Shanghai: Stocks open lower after central bank cuts reserve ratio

[SHANGHAI] China stocks opened lower on Tuesday, even after the country's central bank resumed its easing cycle, injecting an estimated US$100 billion worth of long-term cash into the economy through a reduction in banks' reserve requirement ratio (RRR).

The CSI300 index fell 0.5 per cent to 2,864.11 points at 1:32 GMT, while the Shanghai Composite Index lost 0.7 per cent to 2,668.80 points.

The People's Bank of China (PBOC) said late on Monday it was cutting the RRR, or the amount of cash that banks must hold as reserves, by 50 basis points, taking the ratio to 17 per cent for the biggest lenders.

The Hang Seng index in Hong Kong was up 0.5 per cent, to 19,201.43 points.

REUTERS