The 1% reserve requirement ratio........>

CHINA PRESS: The 1% reserve requirement ratio (RRR) cut that will take effect on

Monday may not have as direct an impact on liquidity as the media reports,

reported the newspaper The Paper, citing the China International Capital

Corporation (CICC).

  - The actual impact of the RRR cut will also depend on the size of the

liquidity injected by the PBOC's open market operations (OMO) in the future,

CICC said, considering that the current balance of OMOs is as high as CNY9.26

trillion, of which more than CNY600 billion will be matured in October.

  - There will be CNY451.5 billion in medium-term loan facilities (MLF) and

another CNY150 billion of treasury deposits maturing this week, with no reverse

repos expiring. Thus, in addition to the replacement of MLF, the RRR cut will

release incremental funds of another CNY750 billion, the newspaper said, citing

Wind Information.