MNI POLICY: China To Increase Efforts To Boost Econ: Official

-- A range of policy measures planned for post-virus Boost: NDRC

     BEIJING (MNI) - China will increase its macro-policy efforts to overcome

the impact of the coronavirus, with a more proactive fiscal effort and flexible

monetary policy, wrote He Lifeng, director of the National Development and

Reform Commission in an article published on the NDRC website late Wednesday.

     New measures, as needed, will include increasing the deficit level, issuing

virus-related special China Government Bonds, expanding the issuance of local

government special bonds, and improving the efficiency of capital.

     Meanwhile, the monetary authorities will cut the reserve requirement ratio

and interest rates, and use refinancing tools to guide the lending rates down to

help the real economy.

     Here are other main points from the article:

     - China will look to stabilise private consumption, particularly bigger

ticket items, whilst increasing government spending at an appropriate pace.

     - China will renew old urban communities, strengthen infrastructure

projects, promote the upgrade of traditional industries, boost spending in

strategic emerging industries, and activate private investment.

     - China will look to push tax and fee cuts, reduce corporate financing

costs, increase lending to small companies and increase interest subsidies for

entrepreneurial guaranteed loans.

     - Authorities will ensure the smooth flow of international goods and help

enterprises to keep orders and market share.

     - Priority will be given to stabilizing the job market, focusing on jobs

for college graduates, migrant workers, and labor in poor areas.

--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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