PBOC offers stimulus relief for mortgages, cuts RRR for banks

The People’s Bank of China PBOC announced stimulus measures for banks and mortgage owners on September 24, as the country scrambles to hit its 2024 annual GDP growth target of 5%.

Some of the measures, unveiled by the PBOC governor Pan Gongsheng at a press conference, include cutting the short-term seven-day reverse repo rate to 1.5% from 1.7%, and cutting the reserve requirement ratio RRR -- the amount of funds that banks must keep at the central bank -- by 0.5%. This latter move, which doesn't apply to smaller, rural banks, could add around Rmb1 trillion $140 billion of liquidity into the market, said Pan. 

The...