Hong Kong locks down, stock market shut as city braces for typhoon Saola

The Asian financial hub of Hong Kong and China's neighbouring southern province of Guangdong cancelled hundreds of flights on Friday as fears of powerful Typhoon Saola forced some mainland cities to shut businesses, schools and financial markets.

Packing winds of more than 200 kph, the typhoon could make landfall late on Friday or early on Saturday in Guangdong, and rate among the five strongest to hit the populous province since 1949, Chinese authorities have warned. All flights with Hong Kong between 2 pm (0600 GMT) on Friday and 10 am (0200 GMT) on Saturday have been cancelled PHOTO: REUTERS

PBoC cuts banks’ FX reserve ratio

China’s central bank said on Friday it will cut the amount of foreign exchange that financial institutions must hold as reserves for first time this year, a move seen aimed at slowing the pace of recent yuan depreciation.  The People's Bank of China (PBoC) said it would cut the foreign exchange reserve requirement ratio (RRR) by 200 basis points (bps) to 4 per cent from 6 per cent beginning September 15. The PBoC previously cut the FX reserve requirement ratio for financial institutions by 200 basis points in September 2022 in a bid to rein in a weakening yuan and make it less expensive for banks to hold dollars. Reuters