SHANGHAI : China stocks opened down on Monday, as market participants shrugged off a cut in the reserve requirement ratio that fell below their expectations, saying it might not yet be enough to reverse economic slowdown.
The People's Bank of China said on Friday it would cut the reserve requirement ratio for all banks by 25 basis points , releasing about 530 billion yuan in long-term liquidity to cushion a sharp slowdown in economic growth. Data showed China's economy grew at a faster than expected clip in the first quarter, expanding 4.8per cent year-on-year.
Real estate developers lost 1per cent, banks dropped 2.6per cent, while brokerage firms slumped roughly 3per cent in early morning trade.As a growing number of business leaders and analysts warn that a strict zero-COVID policy is triggering economic disruptions, China said on Friday that it will help hundreds of companies in key sectors to resume production in locked-down Shanghai.