China cuts banks reserve requirement ratio to boost small business

The Peoples Bank of China (PBOC) will cut the reserve requirement ratio (RRR) for most of the banks by 1 percentage point from April 25 to boost small businesses, and to improve financial stability and liquidity.

"The moves aims to create a sound environment for high-quality growth and supply-side reform," according to the PBOC website.

The money released will be used to pay back medium-term lending facilities.

The RRR cut comes after GDP expanded 6.8 percent year on year in Q1, unchanged from the previous quarter.