(Yicai) Sept. 24 -- China’s main stock indexes jumped today after the central bank announced a series of monetary stimulus and real estate supporting measures to stabilize economic growth.

The Shanghai Composite Index [SHA: 000001] soared 2.4 percent as of lunch break today, while the Shanghai Stock Exchange Star 50 [SHA: 000688] rose 2.6 percent. The Shenzhen Component Index [SHE: 399001] jumped 2.6 percent, and the ChiNext Index [SHE: 399006] surged 3.5 percent.

The People’s Bank of China lowered the reserve requirement ratio by 50 basis points to provide about CNY1 trillion (USD142.1 billion) worth of long-term liquidity, Governor Pan Gongsheng said at a press conference today. It may further cut the RRR by 25 bps to 50 bps later this year, he noted.

Moreover, the PBOC trimmed the seven-day reverse repurchase rate by 20 bps to 1.5 percent. The loan prime rate and deposit rates were also cut by the same amount to keep commercial banks’ net interest rate spread stable.

To support the struggling property market, the central bank reduced the average interest rate for existing mortgages by 50 basis points and lowered the minimum downpayment ratio for second homes to 15 percent from 25 percent.

The PBOC also announced that it would create new monetary policy instruments to support the stable development of the stock market. It will introduce swap facilities for securities companies, funds, and insurers so they can get liquidity from the central bank by pledging assets, thus enhancing their ability to acquire funds and increase stock holdings.

A special re-landing plan will also be implemented to guide lenders in providing loans to listed firms and major shareholders to support their share repurchase and shareholding increase initiatives.

Editors: Liao Shumin, Futura Costaglione