China's stocks opened mixed on Monday, as the country's banks will begin adopting lower reserve requirements.
The benchmark Shanghai Composite Index rose 0.1 percent, or 2.45 points, to open at 2,363.11, while Shenzhen Component Index opened at 9,805.45, down 2.78 points, or 0.03 percent.
The People's Bank of China, or the central bank, said on Wednesday evening that it will lower banks' reserve requirement ratio (RRR) by 50 basis points, effective on Dec. 5, to replenish liquidity in the country's banking system.
The latest cut drops the RRR to 21 percent for large commercial banks and 17.5 percent for mid- and small-sized banks. An estimated 396 billion yuan (62.38 billion U.S. dollars) in capital will be released into the market.
