China's Call to Cool Off Lending Gives Investors a Chill

Slow down! That's the message Chinese economic authorities are sending out loud and clear. For the second time since mid-January, the People's Bank of China, the nation's central bank, has raised reserve requirements for banks. Effective Feb. 25, the country's large banks will be required to increase their reserves to 16.5%, up a half-percentage point from the January level. Smaller banks will now have to keep 14.5% in reserve, also up a half-percentage point.