The People's Bank of China announced a 50 basis point cut to banks' reserve requirement ratio, releasing 1 trillion yuan in long-term capital starting February 5th. Regulators also said they will soon issue measures to encourage bank lending to qualified property developers. Beijing has been reluctant to embark on massive stimulus due to concerns over widening yield gaps with the US. Analysts say the stimulus measures may stabilize markets in the near term, but a fundamental economic recovery will require improved property and consumption trends.