China moves to spur its slowing economy and boost markets by cutting required bank reserves

By ELAINE KURTENBACH
AP Business Writer

BANGKOK (AP) — China’s central bank plans to reduce the ratio of reserves banks must keep on hold as part of a slew of measures to support its slowing economy. Pan Gongsheng, governor of the People’s Bank of China, said the government soon plans to issue a policy on lending to property developers to help the industry. The news prompted a surge in share prices, with Hong Kong’s benchmark jumping 3.6%. Pan said the deposit reserve requirement would be cut by 0.5 percentage points as of Feb. 5, injecting about $141 billion into the economy. He said China’s economy is recovering, allowing ample room for policy maneuvers.