China Financial Daily

China’s central bank said deposit reserve ratio would be reduced during the year
It is reported that in October the central bank expanded the money supply accounting diameter , the housing fund center deposits and non- deposit-taking financial institutions in the deposit-taking financial institutions incorporated within M2 accounts . Bank insiders said that the current growth rate of M2 has been very low, during the year China should be lowered its deposit reserve ratio .

April 21, the fourth time that the central bank decided to raise the deposit reserve ratio
People’s Bank of China on April 17 announced that from April 21, China will increase deposit-taking financial institutions of RMB deposit reserve ratio by 0.5 percentage points. This is the fourth time this year the central bank raised the deposit reserve ratio. After this increase , medium-sized financial institutions to deposit reserve rate of 20.1%, which reaches the historic highs.
Analysts believe the move is intended to further contraction ample liquidity in the banking system . It is estimated that 0.5 percentage points , China can freeze one time more than 3,600 billion yuan of bank funds .

Deposit reserve ratio is raised again to 19.5%, over 350 billion funds may be frozen
People’s Bank of China recently decided to increase deposit-taking financial institutions of RMB deposit reserve ratio by 0.5 percentage points from February 24, 2011. This is the second time this year the central bank raised the deposit reserve ratio unity, which is the eighth time since last year raised the deposit reserve ratio. According to industry estimates, the increase, the central bank may be a one-time freezing of bank system liquidity of about 350 billion yuan.