MNI POLICY: China Vows Quicker Spending to Strengthen Recovery

China will speed up the use of new fiscal funding to strengthen the economic recovery and ensure the spending goes to help companies and improve people's livelihoods, the State Council said following an executive meeting on Monday.

By early August, most of the planned CNY2 trillion in new fiscal funding was channeled to municipal governments, with a minor portion used to adjust for tax and fee cuts, the government said in a statement on its website.

China will continue to reduce the burden on market entities and ensure the new financing flows to the real economy, in particular private and small companies with the help of structural monetary policy tools, the statement said.

The Government would also deepen the Loan Prime Rate reform and guide down lending interest rates, support the issuance of credit loans and urge banks to issue preferential interest rate loans via using re-lending and rediscounting funds.