With all eyes on china cutting reserve ratios, now may be a great time to take a look at PBOC reserve assets for the latest time available. Reserves in August are just under 22.8 trillion RMB. That is the third consecutive month of decreases, but still higher than April and May, which saw on reserves hover between 22.3 and 22.4 trillion respectively. In YoY comparison, 2018 only increased 2% from 2017, so the MoM decrease may be due more to seasonality than trade war issues. However, we do expect these reserve assets to decrease even more as a result of reserve ratio cuts.