On May 12, China's central bank raised the deposit reserve requirement ratio for Chinese banks by 50 basis points as part of its ongoing efforts to battle inflation.
The hike, effective as of May 18, is the fifth this year and the 11th since January 2010. It brings the deposit reserve requirement ratio to a new high of 21 percent for most big banks in China.
It is estimated that the central bank has frozen an additional RMB 370 billion ($56.75 billion) through the hike.