Action by the People’s Bank of China to inject liquidity into Chinese markets failed to prevent a sharp drop in markets when they opened today (October 8).

The PBoC said on October 7 it was cutting reserve requirements for financial institutions by one percentage point, the fourth such move this year. The move frees up liquidity to encourage banks to expand lending, as the economy wobbles in the face of sustained trade pressure.

The central bank said it would maintain “reasonable and