China cuts bank reserve ratio to stabilise economy

China’s central bank has cut banks’ reserve requirement ratio to help lift economic growth amid a slowdown.

The People's Bank of China trimmed the ratio requirement by 50 basis points to 19.5%, which will come into effect from Thursday.

As the first such cut since May 2012, the central bank hopes it will boost lending into the real economy.

It comes after data last month showed China’s economy grew at the slowest pace in 24 years in 2014. Gross domestic product rose 7.4% from 7.7% in 2013.

Khiem Do, a fund manager at Baring Asset Management, said the move would be "very positive" for stocks.