Latest News:  
Beijing   Sunny    13 / -2   City Forecast

People's Daily Online>>China Business

Banks' reserves 'can be invested

By Chen Jia (

15:52, March 13, 2012

The cash reserve requirement imposed on banks by China's central bank can be injected into the stock market to boost investor confidence, Jiang Lianhai, a deputy to the National People's Congress said on Monday.

"This capital can be seen as a macroeconomic strategic instrument without the purpose of making profits," said Jiang, who is also the leader of the Securities Association of Jilin province.

Jiang suggested that the banks' capital could be directly invested into the stock market as a buffer fund that can help it avoid fierce fluctuations.

"Another way is to provide the money to securities and fund companies, indirectly invested into the shares," he added.


Leave your comment1 comments

  1. Name

PD User at 2012-03-13183.39.34.*
CPC must learn the very sour and uugly lessons of the USA and EU wherein banks and financial institutions were allowed to get mixed up in the stock exchanges and other vehicles to boost parked funds (*cash reserves*) of banks. What are going wrong now with the financial states of all such financial institutions of the USA and EU? Is a very risky situational proposal with stock (shares) plays of banks may mislead the public, mums and dads!!!

Selections for you

  1. EMUs of CSR export to Malaysia

  2. Delicate porcelain painting in Jingdezhen

  3. Pupils get nutrition improved in Sichuan

  4. NBA:Bulls beat Knicks 104-99

Most Popular


  1. Truth about Tibet is slowly coming to light
  2. Expert: Glitter of foreign diploma to fade away
  3. NPC reform reflects vote of confidence
  4. Facing problems forges confidence for development
  5. Defense budget guards peaceful intentions
  6. Will China's economy keep growing or slow down?
  7. Chinese products bring benefits to U.S. consumers
  8. Is international 'hot money' flowing into China?
  9. China's economy to roar ahead amid global woes
  10. U.S. solution to Syria issue doomed to failure

What's happening in China

Thousands of pupils get nutrition improved in Sichuan, China

  1. Elderly Tibet monks, nuns gets pension allowance
  2. Local official goes missing after debt rumors
  3. China promotes "Driving with Courtesy" campaign
  4. 4,000 arrested in crackdown on economic crimes
  5. First cultural bonded zone to settle in Beijing

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai