According to an article by Chinese Finance Minister Liu Kun published in the People’s Daily on Thursday, more active fiscal policy is needed in the face of growing pressure on the economy.
“At present, the economic and social development of China is still facing great uncertainties, and the downward pressure on the economy continues to increase”,
“A more active fiscal policy is a practical need to cover the downward pressure on the economy.”
“Further tax cuts would help businesses, guaranteeing and developing jobs was a top priority.”
“The coronavirus epidemic has had a huge impact on the growth of China’s tax revenue.”
“In the first quarter of this year, tax revenue has grown negatively, it is expected that tax revenue for the entire year of 2020 will be lower than that of the previous year.”
Markets expect the government to soon announce a new stimulus package to cushion the economy hard hit by the coronavirus epidemic. The recovery plan could probably be presented before the annual session of the National People’s Congress (NPC) which begins on May 22.
The above comments have little or no impact on market sentiment as they continue to be driven by trade tensions between the United States and China, fears of a second wave of viruses and increased damage in the world.
Most Asian stocks trade USD / JPY keeps lows near 106.85. The losses of nurses in AUD / USD pair were caused by disappointing Australian employment data. The spot fell by 0.26% to trade near 0.6440.