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China's surprise hint at a possibility of freeing up more liquidity by cutting the amount of cash banks must hold in reserve revives market concerns about economic slowdown in the second half of the year amid sluggish demand, softer export momentum, property tightening measures and higher commodity prices.
For the first time in over a year, China’s State Council on Wednesday signalled that the reserve requirement ratio (RRR) might be cut, in a move to step up financial support for the real economy, especially small and medium-sized enterprises.
“We think this policy . . .
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