Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China Vows Tax Cuts on Larger Scale to Shore Up Sagging Economy

Published 15/01/2019, 01:12 pm
Updated 15/01/2019, 02:56 pm
© Bloomberg. A woman carries a child holding a balloon at a sports stadium in Golmud, Qinghai province, China, on Sunday, July 22, 2018. Amid rising fears about a trade war, China's policy makers have unveiled measures to boost infrastructure construction and credit to smaller firms, as well as tax cuts.

© Bloomberg. A woman carries a child holding a balloon at a sports stadium in Golmud, Qinghai province, China, on Sunday, July 22, 2018. Amid rising fears about a trade war, China's policy makers have unveiled measures to boost infrastructure construction and credit to smaller firms, as well as tax cuts.

(Bloomberg) -- China will cut taxes “on a larger scale” to help support its slowing economy, according to senior economic policy officials.

  • The government will continue to cut taxes, especially for small businesses and the manufacturing sector, according to a statement distributed to reporters before a press conference with Zhu Hexin, deputy governor of the People’s Bank of China, Xu Hongcai, deputy minister of the Ministry of Finance and Lian Weiliang, deputy chairman of the National Development and Reform Commission on Tuesday.

Key Insights

  • China confirmed more supportive measures coming in 2019 to stabilize the economy, according to agreements reached by top leadership at a economic work conference last month
  • There’s little sign that the incremental stimulus so far has turned around sentiment in the real economy, which could register the slowest growth in nearly three decades in data scheduled for release next week
  • China’s new yuan loans in 2018 increased 2.64 trillion yuan from the previous year to 16.17 trillion yuan, according to a statement by the PBOC before the press conference, signaling that December lending exceeded most economist estimates
  • China’s loans to small and medium-sized enterprises rose 17.1 percent in the Jan-Nov period over a year ago, according to the PBOC statement
  • China to take measures to stabilize auto consumption, according to a statement by the NDRC before the press conference
  • China to increase issuance of local government special bonds, according to a separate statement by the Ministry of Finance at the press conference

Get More

  • China’s economy challenged with deepening slowdown from slumping exports, falling prices, sluggish credit growth

To contact Bloomberg News staff for this story: Yinan Zhao in Beijing at yzhao300@bloomberg.net;Heng Xie in Beijing at hxie34@bloomberg.net;James Mayger in Beijing at jmayger@bloomberg.net

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Sharon Chen

©2019 Bloomberg L.P.

© Bloomberg. A woman carries a child holding a balloon at a sports stadium in Golmud, Qinghai province, China, on Sunday, July 22, 2018. Amid rising fears about a trade war, China's policy makers have unveiled measures to boost infrastructure construction and credit to smaller firms, as well as tax cuts.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.