(Yicai Global) Jan. 2 -- China's three major stock benchmarks climbed this morning as investors got encouraged by a promised reserve requirement ratio cut on Jan. 6, which could bring CNY800 billion (USD114.6 billion) more liquidity to the financial system.

The Shanghai Composite Index began 0.52 percent higher at 3,066.34. The Shenzhen Component Index was at 10,509.12, up 0.75 percent. The ChiNext Price Index, which tracks growth enterprises in Shenzhen, gained 0.73 percent to 1,811.22.

The People's Bank of China said yesterday that it will slash financial institutions' RRR by 50 basis points to support the real economy. 

The move will offset the impact of cash demand ahead of the Spring Festival, observed later this month, a PBOC official said, denying a "flood-like" stimulus. "The stance of prudent monetary policy has not changed," the official added. 

Editor: Emmi Laine