The Chinese mainland's fiscal health remains resilient, with forecasts indicating the government can meet its budget goals for 2024 through comprehensive measures, Finance Minister Lan Fo'an announced on Saturday.
Lan emphasized that there is significant room for further spending and borrowing, while additional policy tools are being explored alongside existing counter-cyclical adjustments. These efforts aim to stimulate growth, expand domestic demand, and mitigate economic risks.
Upcoming targeted fiscal measures include substantial support for local governments to address hidden debt issues and the issuance of special national bonds. These bonds are intended to enhance the tier-one core capital of major state-owned commercial banks, thereby improving banks' risk management and credit provision capabilities to support the real economy directly.
Additional initiatives will focus on stabilizing the real estate market through the deployment of local government special bonds, dedicated funds, and specific tax policies. The finance minister also announced increased support for vulnerable groups, underscoring the government's commitment to comprehensive economic stability.
Economists have expressed optimism about these measures. Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, stated that if these targeted policies are swiftly effective, achieving this year's growth target of around 5 percent is feasible. Similarly, Bruce Pang, chief economist of JLL Greater China, echoed the sentiment, highlighting the potential for these initiatives to drive the desired economic outcomes.
Reference(s):
China to launch more fiscal stimulus measures, says finance ministry
cgtn.com
