China may raise banks' required reserves this month -paper
A man walks past a branch of China's Minsheng Banking Corp in Shanghai November 19, 2009. China Minsheng Banking Corp, the country's seventh-largest listed bank, raised US$3.9 billion when it priced its Hong Kong initial public offering around the mid-point of its indicated range, sources familiar with the deal said on Thursday. REUTERS

China will probably raise banks' reserve requirements this month to soak up excessive liquidity in the economy, the official China Securities Journal reported on Thursday.

In a front-page article, the newspaper cited industry analysts as saying that a surge in capital inflows and large amounts of maturing bills may prompt the People's Bank of China to increase reserve requirements for the third time this year.

The newspaper does not represent the view of the central bank and has a mixed record in predicting past policy moves.

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