Economist calls for cut in reserve requirement

State forecaster says relaxing ratio will free up capital for investment

The rising cost of borrowing is weighing on China's enterprises, especially real estate developers, an economist from a government think tank warned on Tuesday.

Zhu Baoliang, head of the State Information Center's economic forecasting department, called for more flexibility in the central bank's monetary policy, including cutting the reserve that banks must park in the People's Bank of China, the central bank.