China banks' reserve ratio cut takes effect

China cut banks' reserve requirement ratio by 50 basis points on Monday to release about one trillion yuan ($139.04 billion) worth of long term funds, it said in a statement.

Central bank Governor Pan Gongsheng announced the cut on Jan. 24, with effect Feb. 5.

The cut is the first such this year, as policymakers extend efforts to shore up a fragile economy that faces multiple challenges. ($1 = 7.1920 Chinese yuan renminbi)