China's Cabinet: Will not resort to flood-like stimulus

China will keep liquidity reasonably ample but will not resort to "flood-like" stimulus, the Chinese state media reported on Monday, citing a statement from China's cabinet.

The cabinet said that China will make macroeconomic policies more targeted and effective and added that they will guide lending rates lower.

Market reaction

These remarks were largely ignored by the market participants. As of writing, Germany's DAX 30 Index was up 0.18% on the day, the Euro Stoxx 50 Index was unchanged and S&P 500 futures were gaining 0.32%.