China’s Central Bank to Pour $158 Billion of Profit Into Treasury

China set an ambitious economic growth target of 5.5% for the year, putting the spotlight back on fiscal stimulus

(Bloomberg) — China’s central bank will hand over more than 1 trillion yuan ($158 billion) in profits to the finance ministry to help the government boost fiscal spending to stimulate the economy this year.

The funds, which stem from income over the past few years from the nation’s foreign exchange reserves, will be used mainly on tax rebates for companies and to bolster the finances of local governments, the People’s Bank of China (PBOC) said Tuesday in a statement.