China’s central bank cuts bank reserve rates, pledges other moves to help the economy

AP Business Writer

The Chinese central bank has reduced the amount of reserves banks are required to keep, among other moves it is rolling out to help revive the slowing economy. People’s Bank of China Gov. Pan Gongshen said the reserve requirement would be cut by 0.5 percentage points and follow up with further cuts. Pan said the central bank plans new policies to support stable development of the stock market.  He also said down payment requirements for buyers of second homes would be reduced to 15% from 25% and that mortgage rates would also be cut. The latest moves to support the economy mainly center on addressing a prolonged downturn in the property sector.