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China to Increase Fiscal Spending at Year End: Journal

CHINA PRESS

As the PBOC announced a one-off renewal to MLFs expiring on Nov. 16, fiscal outlay should surge in November and December to alleviate a liquidity pressure, the China Securities Journal reported citing analysts and PBOC data. The central bank is unlikely to issue large injections of liquidity to limit macro leverage ratios and will instead opt for renewing excess expiring MLF in November, the Journal said. The net liquidity released from fiscal disposition in Q4 may exceed CNY 1trillion.

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