The People's Bank of China (PBOC)announced that it would cut the reserve ratio requirements (RRR) for financial institutions by 50 basis points starting from February 5. After this reduction, financial institutions' weighted average RRR will be approximately 7.0%, releasing approximately 1 trillion yuan (139 billion US dollars) of long-term liquidity to the market.

The background of the PBOC's announcement of the RRR cut was that people were worried about the economic situation and were disappointed with the government's countermeasures. Low market confidence has caused the market value of China's and Hong Kong's stock markets to evaporate more than US$6 trillion from the peak in 2021.