1 Minute Read by Reuters Staff (Reuters) – SHANGHAI, July 12 – China’s stock market gained in early trade on Monday, boosted by the central bank’s unexpected reduction in the reserve requirement ratio (RRR) to help the economy. At 0137 GMT, the CSI300 index was up 0.3 percent at 5,081.87 points, while the Shanghai Composite Index was up 0.3 percent at 3,534.93 points. Hong Kong’s Hang Seng index rose 0.8 percent to 27,552.64 points. The People’s Bank of China (PBOC) announced late Friday that it will reduce the amount of cash that banks must retain as reserves, releasing about 1 trillion yuan ($154.19 billion) in long-term liquidity to support the country’s slowing post-COVID economic recovery. “Overall, we believe the larger-than-expected universal RRR drop would confirm market expectations that the PBoC is committed to maintaining liquidity stability, supporting risk sentiment in the near term,” OCBC Bank stated in a note on Monday. (THE NEWSROOM OF SHANGHAI) Shri Navaratnam edited the piece.)/n
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