China's Cabinet: Will make further targeted RRR cuts to medium and small banks

China will make further targeted reserve requirement ratio (RRR) to medium and small banks, the Chinese state media reported on Monday, citing a statement from China's cabinet.

Key takeaways (via Reuters)

"Will increase 1 trillion yuan of re-lending and re-discount quotas for medium and small banks."

"Will issue more local government special bonds."

"Will extend subsidies for new energy vehicle (NEV) purchase, exemption from NEV purchase tax for two years."

Market reaction

These headlines were largely ignored by the market participants with major European equity indexes clinging to small daily gains on Tuesday.