MNI BRIEF: China Enhances Fiscal Response To Boost Economy

China will strengthen fiscal efforts and maintain an accommodative monetary stance to boost the economy, which is suffering from insufficient demand, said Han Wenxiu, deputy director in charge of routine work at the Office of Central Financial and Economic Affair Commission in a press conference on Friday.

Beijing must implement effective macroeconomic policies, such as speeding up the issuance and use of local government special bonds to promote infrastructure construction and major projects, and increase fiscal support for technological innovation, the green economy, and emerging industries to optimise industrial upgrades, he said, adding monetary policy will remain flexible and appropriate via maintaining ample liquidity and targeting key sectors to support the real economy. (See MNI: China Slowdown Likely To Prompt Extra Fiscal Stimulus)

Authorities will further promote large-scale equipment upgrades and consumer product trade-ins, and utilise long-term special treasury bonds to promote national major projects and enhance overall economic competitiveness and security capabilities, Han added.