China’s central bank is injecting a combined 500 billion yuan (€62 billion) of liquidity into the country’s top banks, according to media reports, a sign that authorities are stepping up efforts to shore up a faltering economy.

Global shares and commodity prices rose on the reported move, although local money market rates climbed on the day, reflecting continued tightness in liquidity.

The Wall Street Journal, citing an unnamed Chinese bank executive, said the People’s Bank of China (PBOC) is pumping in 100 billion yuan each into China’s top five banks via standard lending facility in the form of three-month loans. When contacted, a PBOC spokesman said: “We will make an announcement if we have any news.”

The central bank may be worried that an expected tightening in liquidity ahead of the quarter-end as well as a series of upcoming initial public offerings could trigger a sharp rise in short-term rates.

Analysts say the amount is equivalent to a 50-basis-point cut to banks’ reserve requirement ratio – the level of cash commercial lenders must carry on deposit with the PBOC. However, an RRR cut would have a longer-lasting and larger impact across the economy.

“We think the latest SLF is mainly aimed at providing liquidity to pre-empt potential liquidity shortages in the banking system in the coming weeks,” Jian Chang, China economist at Barclays Capital in Hong Kong, said in a research note.