Reserve requirement ratio cut will support real economy

China's cut in the banking reserve requirement ratio, or amount of cash that banks are required to hold as reserves, announced on Sunday, failed to hold back the selling spree in the domestic A-share market on Monday.

But it will, together with previous three cuts this year, help channel funds into the country's real economy and boost the growth of the Chinese economy.

Monday's domestic stock market tumble is, to an extent, attributable to investor concerns as a result of the easing growth and the ongoing trade tensions in many parts of the world. But it was also a normal reaction to the accumulative pressure from the steep sell-offs in overseas markets in the past week, after the Chinese stock market reopened after its weeklong closure for the National Day holiday.