MNI POLICY: China Should Push Fiscal Policy in H2: Politburo

     BEIJING (MNI) - China's fiscal policy should be further applied to improve

efficiency against a backdrop of increasing economic headwinds, while monetary

policy must be neither too tight nor too loose, said the Communist Party's

Politburo, the nation's highest power body, Xinhua News Agency reported.

     China should implement both a proactive fiscal policy and a prudent

monetary policy, while continuing the implementation of tax and fee cuts and

keeping the liquidity at a reasonable and ample level, a statement released

Tuesday said.

     According to the Politburo, meeting to set the tone of economic planning

for the second half of the year, China should deal with the economic and trade

frictions effectively, while stabilizing employment and finance, along with

foreign trade and investment.

     China should extend its opening up, and promote financial sector supply

side reform. This includes guiding banks to increase medium- and long-term

financing for the manufacturing sector and private companies, and managing

risks.

     Also, China should not use the property market as a short-term means of

stimulating the economy, but implement a longer-term management plan, adding

that China should stick to the principle that housing is for living, not

speculating.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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