Caixin
Jul 25, 2018 04:08 AM
ECONOMY

China Makes Fiscal-Policy Nudge, Not a U-Turn

Slowing infrastructure investment has dragged down the growth of fixed-asset investment. Photo: VCG
Slowing infrastructure investment has dragged down the growth of fixed-asset investment. Photo: VCG

China’s pledge to lower corporate taxes and encourage infrastructure projects amounts to a fiscal nudge to counter slowing economic growth, not a policy U-turn or a relaxation of controls on local government spending, analysts said.

The State Council said Monday that China would take a more active fiscal policy posture and pledged to accelerate local governments’ special bond issuance for infrastructure projects. Chinese stocks rallied higher Monday on speculation of a large-scale policy easing.

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