PBOC’s Xu: China’s fiscal policy has room to support the economy

Reuters reports the comments written by the People’s Bank of China (PBOC) Research Head Xu Zhong for a financial media website Wallstreetcn.com.

Key Points:

China’s fiscal policy has room to support the economy.

The central government’s fiscal deficit ratio should be higher this year than in 2017.

The government should use fiscal funds to replenish the capital of state-owned financial institutions and ease the strain in the financial market deleveraging.

PBOC to implement well judged, neutral monetary policy.