The PBOC's decision to reduce RRR for...>

CHINA PRESS: The PBOC's decision to reduce RRR for almost all commercials banks

by 1ppt but require banks to pay back their MLF owed to the central bank aims to

add CNY400 billion capital to microbusinesses and lower banks' capital costs,

Security Times reported Wednesday. As the exchange for MLF will help commercial

banks to reduce their loan costs, it should help companies' financing costs

drop. 

- The measure will help banks to better support the real economy as it would

ease banks' liquidity pressure, Gao Yuwei, researcher at international finance

research institute of Bank of China; 

-It will benefit the bond market, and further stabilize the stock market and

economy: Zhang Ming, chief economist of Ping An of China Securities.