China to introduce targeted incremental fiscal package : Minister of Finance

(ECNS) -- China will soon introduce a series of targeted incremental fiscal policy measures to stabilize growth, expand domestic demand, and mitigate risks, Minister of Finance Lan Fo'an told a press conference on Saturday.

The package includes increasing the debt ceiling on a relatively large scale in a lump sum to replace existing hidden debts of local governments and help defuse their debt risks.

It also covers issuing special treasury bonds to support state-owned large commercial banks in replenishing core Tier 1 capital, enhancing their ability to withstand risks and expand credit supply.

It will leverage a combination of tools such as local government special bonds, special funds, and tax policies to stabilize the real estate market and prevent further declines.

The minister also mentioned that China would increase support for key groups. He said before the National Day, one-time living allowances were distributed to disadvantaged groups, and going forward, efforts will be strengthened to provide awards and aid to students, boosting overall consumption capacity.

The minister said that the four policy measures have already entered the decision-making process. However, adjustments are not limited to just these four points, as other policy tools are also under consideration. For instance, the central government still has significant room for borrowing and increasing the deficit.