China considering making more cuts to banks-cash reserve

China considering making more cuts to banks-cash reserve requirements to stimulate lending and sustain economic growth as the housing market cools and Europe's sovereign-debt crisis negatively affects the nation's exports.

The proportion of cash that lenders must set aside will fall half a percentage point from Feb. 24, the central bank said Feb. 18 on its website. Standard Chartered Plc forecasts at least three more reductions this year, while HSBC Holdings Plc sees a minimum of two.

The Shanghai Composite Index rose 0.9 percent as of 11:30 a.m. local time, extending a five-week winning streak. Asian stocks rallied and metals gained.

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