Said it takes effect in 2 wks. I wonder if THAT will convince people not to bet their tuition and rent money in the stock market?
http://www.chinadaily.com.cn/china/2007-04/29/content_863779.htm "China hikes bank reserve ratio to cool investment" China's central bank Sunday raised the amount of money banks must set aside in reserves, reducing the money available for lending, in the latest move to rein in the investment boom. The deposit reserve ratio for depository financial institutions will be raised by 0.5 percentage point to 11 percent starting on May 15, the People's Bank of China said in a statement on its website. "The increase is aimed at stepping up liquidity management of the banking system and to guide a reasonable growth of credit," said the statement. That marked the seventh hike in less than a year in addition to three interest rate increases as regulators try to prevent the economy from overheating. China's economy surged 11.1 percent in the first quarter of this year after growing 10.7 percent in 2006, as shown in official statistics.
Alas the Chinks have not announced today that they're raising Interest Rates at all...they're just forcing banks to hold 0.5% more capital in reserve....pretty feeble really. bankers.