China Central Bank to support SMEs through monetary easing January 1 19:19

The Chinese central bank has announced that it will reduce its financial institutions' reserve requirements by 0.5% from 6th of this month. By increasing the amount of money available on the market, we aim to support SMEs and others affected by trade friction with the United States and support the economy.

Deposit reserve ratio represents the ratio of the total amount of deposits held by Chinese financial institutions that must be deposited to the central bank, the People's Bank of China.

The People's Bank of China said on Tuesday that it will reduce its reserve requirement by 0.5% from 6th of this month.

According to the report, over 800 billion RMB and over 12 trillion yen in Japanese yen will be supplied to the market, which will increase the lending of banks.

In China, the deterioration of management of small and medium-sized businesses affected by trade friction with the United States has become a problem.

Last month, the U.S. and Chinese governments announced that trade negotiations had reached the first stage of agreement. The aim is to support the economy by supporting the cash flow of these companies through measures.