China's targeted reserve cuts to benefit more small firms

China's central bank has relaxed its conditions on targeted reserve requirement cuts to benefit more small firms, in the latest move to support the slowing economy.

The People's Bank of China will include loans for small firms with a credit line of less than 10 million yuan ($1.46 million) in its assessments for targeted reserve requirement cuts, up from 5 million yuan, it said on Wednesday.

"This will help expand the coverage of preferential policies for inclusive financing for small enterprises and will also allow financial institutions to meet the lending needs of these enterprises," the central bank said in a statement on its website.

The policy change takes effect from 2019, it said.

China's economic growth slowed to 6.5 percent in the third quarter, the weakest pace since the global financial crisis.