Reserve ratio cuts to tackle slowdown

It said efforts will be stepped up to write off bad debts and push forward credit asset securitization in an effort to free up loan stocks.

To rein in the soaring lending rate, the State Council vowed to regulate various banking activities.

"This is a good step toward curbing the lending rate," said Zhu Baoliang, an economist at the State Information Center, a government think tank.

"Addressing structural problems, such as gradually eliminating overcapacity and strengthening oversight on interbank lending and online financial products, is critical to bringing down borrowing costs."

In a sign that Beijing is not satisfied with the implementation of a key document released in July that urged the financial system to better support the real economy, the State Council ordered a nationwide inspection of how its policies are carried out.

Analysts said the latest move is part of a series of measures taken in past days that amount to a "mini-stimulus" aimed at protecting the official annual economic growth target of "about 7.5 percent".

Other recent measures include the Ministry of Finance's call for local governments to speed up spending of budgeted funds.

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