On 29 February 2016, the People's Bank of China (PBOC) cut the reserve requirement ratio (RRR), which is the amount of cash that banks must hold as reserves by 50 basis points.  This is an injection of an estimated $100 billion worth of long-term cash into the economy to cushion the pain from job layoffs and bankruptcies in industries plagued by overcapacity.

The RRR cut is said to help create an appropriate monetary environment to support a "supply-side reform" project which will hopefully put China’s economy on a more sustainable growth path.