Opening the tap a little ensures further reforms

The timing that the People's Bank of China chose for lifting the credit supply says a lot about Chinese leaders' economic concerns.

On Wednesday, the Chinese central bank announced a 0.5 percentage point cut in the banks' reserve requirement ratio, thus releasing, according to economists, more than 100 billion yuan ($16 billion) of liquidity to the money market.

Lowering the RRR failed to excite the short-term investors, because the economy was surrounded by too many discouraging data.