PBOC expected to release more capital

Money will be channeled especially for lending to small and micro firms

China's central bank is expected to release more capital into financial institutions, to ensure ample funds are lent to local governments - the key measure to strengthen investment and stabilize economic growth in the coming months, analysts said.

The market expected an overall cut in the reserve requirement ratio (RRR) possibly as soon as this weekend. The last time when the central bank announced a full-scale RRR cut was in January.