On Monday, the Shanghai market posted its worst daily performance in months on Monday after the central bank cut the reserve requirement for banks over the weekend.
The Shanghai composite fell 3.72 percent to close at around 2,716.51 — which marked its largest decline since June 19, according to Chinese financial services firm Wind Information. The Shenzhen composite dropped by 3.834 percent to end at about 1,386.28 on the first trading day since the Golden Week holidays ended. As of 3:21 p.m. HK/SIN, Hong Kong's Hang Seng index traded lower by 1.2 percent.
The People's Bank of China announced on Sunday it was cutting the reserve requirement ratio (RRR) — or the amount of cash that banks have to hold as reserves — by 100 basis points effective Oct. 15. The RRR is currently 15.5 percent for large commercial banks and 13.5 percent for smaller lenders.
The move by China's central bank, its fourth in 2018, came amid concerns about the economic impact of Beijing's ongoing trade war with Washington.