Lowered RRR Not to Boost Stock, Property Market

China's central bank governor said Monday that cuts on reserve requirement ratio (RRR) were not to boost capital market confidence or improve property market liquidity.

Fund released from RRR cuts will flow to different sectors of the national economy in accordance with loan distributions. "There will not be a typical direction," said Zhou Xiaochuan, governor of the People's Bank of China (PBOC).

RRR adjustments do not necessarily imply monetary policy conditions, but are rather adopted to hedge against changes in the country's foreign reserves, said Zhou at a press conference on the sidelines of the country's annual parliamentary session.