China pledges timely fiscal support to bolster growth

China has committed to providing timely fiscal support to stimulate economic growth, according to Vice Finance Minister Liao Min. Speaking at a press conference, Liao stated that additional fiscal policy measures will be implemented as needed to address economic slowdown. The government aims to maintain macroeconomic policy stability and allocate fiscal resources over a longer timeframe. Liao emphasized the importance of optimizing fiscal spending, particularly on people-centered investments and domestic consumption.

At China's July Politburo meeting, leaders committed to boosting the economy by accelerating fiscal spending on ongoing infrastructure projects. The central bank has maintained a loose monetary policy stance and will deploy practical measures when necessary, though it did not hint at explicit rate cuts or bank reserve requirements adjustments.

Liao outlined plans for further fiscal and tax reforms, enhancing budget management, and establishing a more defined framework for central-local fiscal relations. He stressed the necessity of preventing hidden local government debt accumulation and reducing fiscal risks in key sectors, underscoring that such discipline must be strictly enforced.