China has said it will cut

China has said it will cut the limit on the amount of cash the country’s banks have to hold in reserve, a move designed to encourage more lending. China’s central bank said it would reduce the reserve limit from its record high of 21.5% to 21% on 5 December. The bank had been increasing the rate to reduce lending by banks in order to dampen demand and tackle rising prices.http://www.bbc.co.uk/news/business-15962630 Some commentators also suggested the move could be part of a wider effort by Chinese authorities to combat underground lending. China Banking Regulatory Commission said it was looking to curb the rise of shadow banking and private lending in the country. Some estimates put private loans, where rich individuals and businesses rather than banks lend money, at 4 trillion yuan ($627bn; £402bn). The loans often come with exorbitant interest rates of up to 70%.