China’s stock markets tumbled on Monday, as investors were unnerved by the central bank’s decision to slash the amount of cash that the country’s lenders must hold as reserves, in a bid to help spur economic growth.
The People’s Bank of China (PBOC) announced measures on Sunday to cut the reserve requirement ratio (RRR) — or the amount of cash that most commercial banks need to set aside at the central bank.
The move, the central bank’s fourth in 2018, came amid concerns about the economic impact of Beijing’s ongoing trade war with Washington.
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