China cuts the bank deposit reserve ratio by another 0.5% today,...

China cuts the bank deposit reserve ratio by another 0.5% today, further injecting 500B yuan liquidity into the system. On the other hand, in close collaboration with supportive fiscal policies (tax concessions, RD subsidies and export tax rebates), the central bank told domestic banks to support small businesses(excluding the property market), so far 300B special purpoe credit was planned for small businessed this year. Expect sales to rebound following the monetary easing. We may have a trend this year!