Thread by @C_Barraud

🇨🇳Chinese officials are launching a new offensive to support growth:

1/ #China Says Regulators Will Work to Unclog Monetary Transmission - Bloomberg
*Official Link (Chinese): bit.ly/2ADxRKE
bloomberg.com/news/articles/…

2/ #China's NDRC issues draft rules opening access to #oil, #gas infrastructure - Reuters
- China will encourage, support private investment in oil, gas pipelines infrastructure.
*Official Link (Chinese): bit.ly/2LYl6Pi
uk.reuters.com/article/uk-chi…

3/ #China should encourage overseas companies to list A-shares and bring in more foreign investors, according to a front-page commentary in the China Securities Journal.
*Link (Chinese): bit.ly/2vAu3UG

4/ #China cuts banks' risk weightings for debt-for-equity swaps: sources - Reuters
reuters.com/article/us-chi…

🇨🇳 Chinese officials are very pragmatic and want to a avoid a hard landing by:
*Shifting from a selective monetary tightening policy to a selective easing one.
*Implementing a proactive and coordinated fiscal policy.

*Monetary measures (1):
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.

*Monetary measures (2):
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.

*Fiscal measures (1):
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.

*Fiscal measures (2):
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.

*Fiscal measures (3):
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.

*Fiscal measures (4):
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.