China's central bank has increased the amount of money that lenders must keep in reserve, in its latest bid to stem inflation.
The People's Bank of China said the reserve ratio would go up by a further 0.5 percentage points on 29 November.
The move comes after Chinese inflation hit a two-year high of 4.4 per cent last week as the country continued its rapid economic growth.
The central bank hopes that increasing the level of funds Chinese banks have to keep in reserve will help to dampen inflation, as it will limit the amount of money the banks can lend.
Food prices have risen sharply, prompting the government to provide subsidies for its poorest citizens.
The central bank also increased interest rates last month for the first time since 2007.