*Shifting from a selective monetary tightening policy to a selective easing one.
*Implementing a proactive and coordinated fiscal policy.
a/ The PBoC ⬇ RRR 3 times this year and is expected to do it again in the coming mths.
*CSJ (Chinese): bit.ly/2n6qvpx
b/ The PBoC plans to use its Medium-term Lending Facility to encourage bank loans and investment in lower-rated corporate debt.
3/ China’s banks are being given instructions to boost lending by taking a softer stance on loan quotas.
4/ The PBoC let the yuan weaken against USD to its lowest since May 2017.
a/ More Cos will be eligible for the preferential policies of the additional deduction of R&D spending in taxable income, a policy expected to ⬇ another CNY65B of tax within this year on top of an initial goal of ⬇ taxes and fees by CNY1.1T this year.
b/ The government will focus on introducing deeper tax and non-tax fee cuts.
c/ Efforts will be stepped up in issuing the CNY1.35T of special bonds for local government to see more tangible progress on ongoing infrastructure projects.
d/ The government will ensure delivery of the state guaranty fund, targeting at CNY140B of loans for about 150K small and micro firms this year.
e/ Private invest. should be boosted by introducing projects in transport, gas, infrastructure and telcos.
f/ The resumption of public-private-partnership projects may also help private investment.
g/ Local governments will be pushed to make better use of untapped fiscal funds.