China unveiled fine-tuning policies measures to boost growth yesterday. Firstly, there will be targeted tax reduction for research and development spending, that could lower around CNY 65B in taxes. Secondly, monetary policy have to ensure ample liquidity in the markets. Financial institutions will be guided to use the RRR cuts to support small and micro businesses. Thirdly, the funding of the National Financing Guarantee fund will be speeded up to achieve the goal of supporting 150,000 small and micro businesses with CNY 140B in loans per annum. Fourthly, “zombie businesses” will be cleared out resolutely to manage systematic risks.
China unveiled fine-tuning policies measures to boost growth
