China may increase fiscal spending in H2 – Securities Times

“China may increase fiscal funding in the second half to meet its budget deficit goal, and accelerate local bond issuances to boost infrastructure investment,” the Securities Times reported, citing Chinese economists.

Additional takeaways

“Fiscal spending was behind schedule as infrastructure investments in the first five months fell below average.”

“Bond issuances also have been limited as local governments tried to deal with risks from their financing vehicles.”

“The Finance Ministry may arrange some local government special bonds to help them replace hidden debts.”

USD/CNY reaction

USD/CNY was last seen changing hands at 6.4655, down 0.06% on the day.