China Ratio Increase May Not Curb Stocks, Guotai Says
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China’s first nationwide increase in bank reserve requirements since May will fail to drain funds from the financial system, allowing October’s best performing major stock market to gain, Guotai Junan Securities Co. said.
The People’s Bank of China announced yesterday a 0.5 percentage point increase in the amount lenders must set aside in reserve to stem the risk of asset bubbles and accelerating inflation.