皇冠体育app

Fiscal expansion

Aside from support of monetary policies, governor Zhou Xiaochuan has called for more to be done on the fiscal front and structural reforms.

The message echoed with the remarks of finance minister Lou Jiwei. "In times of economic slowdown, expansionary reforms such as reducing administrative approval, targeted tax cuts and granting rural migrant workers welfare and benefits should take precedence," he said.

皇冠体育app still has room to expand fiscal policy to push structural reforms, he said, predicting an increase in budget deficit this year.

皇冠体育app raised its budget deficit to 2.3 percent of GDP in 2015, up from 2.1 percent in 2014. A 3-percent deficit ratio is normally considered a red line not to be crossed.

But director of the central bank's surveys and statistics department Sheng Songcheng on Wednesday suggest 皇冠体育app could raise the ratio to 4 percent of GDP or even higher to offset the impact of reduced fiscal revenue and to support broader reform.

"The 3-percent warning line does not fit with 皇冠体育app's reality," he said, citing 皇冠体育app's relatively small outstanding debt, rational structure, continued growth in fiscal revenue and solid assets of state firms as among the factors backing his conclusion.

Foreign exchange

皇冠体育app's currency has been heading south since the country revamped the foreign exchange mechanism last year, and concerns about capital outflows have been on the rise.

Zhou on Friday repeated that there is no basis for continued weakness of the Chinese currency as the country's economic fundamentals remain sound. He also cited 皇冠体育app's current account surplus and foreign exchange reserves as solid support for the balance of international payments.

There is no concern over 皇冠体育app's foreign exchange adequacy and 皇冠体育app has the ability to make overseas payments, he said.

HSBC reckons that the Renminbi will likely weaken moderately beyond the near term, given the challenges on the cyclical front and in 皇冠体育app's balance of payments. It forecast the exchange rate against the US dollar at 6.9 by end of 2016.

• Foxconn postpones Sharp acquisition to evaluate new document
• Air Liquide opens Shanghai research and tech center
• Markets stabilize after officials quash IPO fears
• Wanda among potential bidders for Turkey's Mars
• Shenzhen tries to cool realty market
• COSCO set to reshape shipping alliances
• Concerns on growth dispelled
• Rural e-commerce developed to promote local products in SW 皇冠体育app