China May Increase Fiscal Spending in H2: Times

China may increase fiscal funding in the second half to meet its budget deficit goal, and accelerate local bond issuances to boost infrastructure investment, the Securities Times reported citing analysts. Fiscal spending was behind schedule as infrastructure investments in the first five months fell below average, the newspaper said citing Wu Chaoming, chief economist of Chasing Securities. Bond issuances also have been limited as local governments tried to deal with risks from their financing vehicles, the newspaper said. The Finance Ministry may arrange some local government special bonds to help them replace hidden debts, the newspaper said citing analyst Tao Jin with Suning Institute of Finance.