Experts say RRR reduction to help ease property sector pessimism

The central bank's move to cut the reserve requirement ratio will not become a stimulus for the property market, which is guarded against speculation, but the increased liquidity will help ease the pessimism clouding the market in the rest of the year, said experts.

The People's Bank of China, the country's central bank, announced on Friday a cut in the reserve requirement ratio for financial institutions by 50 basis points from Sept 16 in the latest effort to bolster the economy.

"The target of the decision is clear, which is not for the purpose of stimulating the property market," said Zhang Dawei, chief analyst at Centaline Property Agency Ltd.