China rolls out fiscal policy package

Follow-up - INA

Chinese Finance Minister Lan Fu said today, Saturday, that his country will adopt a package of additional targeted financial policies in the short term to boost the economy.

“The package includes a relatively large-scale one-time debt ceiling hike to replace existing hidden debts held by local governments and help them deal with debt risks,” he added.

“Counter-cyclical adjustments include not only policies already under relevant policymaking, but also other policy tools under consideration, such as debt issuance and deficit expansion,” he added.

“There is still plenty of room for China’s central finance to issue debt and expand deficits,” he noted.

“China will issue special treasury bonds to support large state-owned commercial banks to replenish their Tier 1 capital to enhance banks’ risk resilience and lending capacity to better serve the development of the real economy,” he added.