China moves to spur its slowing economy and boost markets by cutting required bank reserves

BANGKOK (AP) — China’s central bank said Wednesday it will cut amount of reserves it holds for banks as part of a slew of measures to support the slowing economy.

The announcement by the governor of the People’s Bank of China prompted a surge in share prices, with Hong Kong’s benchmark jumping 3.6%.

Chinese stock markets have languished in recent months as investors pulled money out, discouraged by a faltering recovery from the shocks of the COVID-19 pandemic.