China To Boost Fiscal Spending Mainly In H1 2022: Daily

China will accelerate fiscal spending and advance infrastructure projects in the first half of 2022, with a focus on safeguarding social security and employment as well as water projects, the Economic Information Daily reported citing Lian Ping, chief economist at Zhixin Investment Research Institute. The infrastructure-backed local government special bonds may rise to about CNY4 trillion next year, the daily said. Monetary policy should tilt to loosening with RRR cuts and structural tools to drive down the benchmark Loan Prime Rate, said Lian. The PBOC should release longer term liquidity to improve banks’ ability to purchase government bonds, while also increasing money supply to lower market interest rates, Lian said.