China Raises Reserve Requirements

July 2006
China Chemical Reporter;7/1/2006, Vol. 17 Issue 18, p8
Trade Publication
The article reports that the People's Bank of China plans to raise the reserve requirements by 0.5 percent to 8 percent for commercial banks, excluding cooperatives and rural banks. The requirement is effective on July 5, 2006, and has the goal of reducing excessive investment and credit growth. It is expected to freeze RMB150 billion of funds in the banking system.


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