The central bank said it will lower borrowing costs and inject more liquidity into the system that would free up more money for lending.
Regulators also unveiled plans to support stable development of the stock market.
The dollar index regained some ground after having plunged to a near 14-month low following remarks by two Federal Reserve officials supporting last week’s big interest-rate cut.
Gold held steady near record level in Asian trading and oil prices jumped more than 1 percent amid concerns about the intensifying conflict between Israel and Hezbollah.
China’s Shanghai Composite index surged 4.15 percent to 2,863.13, marking its biggest single-day gain in more than two years. Hong Kong’s Hang Seng index soared 4.13 percent to 19,000.56.
China’s central bank announced a slew of stimulus measures as the economy struggle to achieve its growth target amid continuing property market downturn, weak domestic activity and rising deflationary pressures.
At a press conference on Tuesday, People’s Bank of China Governor Pan Gongsheng said the bank will reduce the reserve requirement ratio by 50 basis points.
He announced that the rate on seven-day reverse repo will be cut by 20 basis points to 1.50 percent and the rate on one-year medium-term lending facility by 30 basis points.
Pan said the reduction was intended to guide the loan prime rate and deposit rates to move downward and maintain stability in the net interest margin of commercial banks.
The governor said the LPR and deposit rates will be cut by 0.2 to 0.25 percentage points.
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First Published: Sep 24 2024 | 3:58 PM IST
