China frees up $70 bn for banks to underpin economy hit by Covid lockdowns

China said on Friday it would cut the amount of cash that banks must hold as reserves for the second time this year, releasing about 500 billion yuan ($69.8 billion) in long-term liquidity to prop up a faltering economy hit by record COVID-19 cases.
 

The People's Bank of China (PBOC) said it would cut the reserve requirement ratio for banks by 25 basis points (bps), effective from Dec. 5.
 

The central bank hopes to spur more lending into the economy but analysts are sceptical it could achieve quick results, as new COVID outbreaks throw factories and households into lockdown, with