Credit Suisse expects 50 bps cut in China's RRR in the first half of 2022

Credit Suisse also raised its rating to 'overweight' on Chinese equities, from 'benchmark' earlier.

Credit Suisse economists expect a further 50 basis point (bps) cut in China's reserve requirement ratio (RRR) in the first half of 2022, given the Asian economy is starting to ease policy while other countries are tightening.

China's central bank had last month cut RRR, or the amount of cash that banks must hold as reserves, releasing 1.2 trillion yuan ($188.77 billion) in long-term liquidity to bolster slowing economic growth amid persistent Covid-19 cases.

The average RRR for financial institutions stands at 8.4%, vice governor Liu Guoqiang said last week, adding that there was still room for the central bank