Direct hit on the Ministry of Finance press conference: Support to promote the stabilization of the real estate market, will introduce a series of targeted incremental policy measures in the near future

Source: Wall Street News

The highly anticipated press conference of the Chinese Ministry of Finance has begun, focusing on "the intensity of countercyclical fiscal policy adjustments" and the new round of incremental fiscal policy "is ready to be launched".

The State Council Information Office held a press conference at 10 a.m. today, inviting Minister of Finance Liao Fu'an to introduce the relevant information on "increasing the intensity of countercyclical fiscal policy adjustments and promoting high-quality economic development" and answer questions from reporters. CCTV reported that three deputy ministers will also attend, responsible for areas including the General Office, Budget Office, and Treasury Office, which are related to many tools in the fiscal policy toolbox, such as ultra-long-term special national bonds, special bonds, and more. Therefore, what specific content they will bring today is highly anticipated.

[10:25] Liao Fu'an: Plans to increase the debt ceiling on a one-time basis, replacing local government existing hidden debts

Minister of Finance Liao Fu'an stated that plans to increase the debt ceiling on a one-time basis, replacing local government existing hidden debts, and intensifying support to help local governments resolve debt risks. The relevant policies will be explained in detail to the public after going through the statutory procedures. This policy is the most significant measure to support debt conversion in recent years, providing timely relief to local governments, freeing up more resources to support economic development, and consolidating the "three guarantees" at the grassroots level.

Liao Fu'an: Avoid imposing "excessive taxes" and effectively safeguard the rights of business entities

Minister of Finance Liao Fu'an stated at the State Council Information Office press conference that in their work, they should not only lawfully and regulatively collect fiscal revenues but also avoid imposing "excessive taxes" to effectively safeguard the rights of business entities.

Liao Fu'an: Make good use of various debt funds

Minister of Finance Liao Fu'an stated at the State Council Information Office press conference that they should make good use of various debt funds. Currently, the issuance of national bonds is accelerating, and the issuance of ultra-long-term special national bonds is being gradually implemented. In the next three months, a total of 2.3 trillion yuan of special bond funds can be arranged for use across the country.

[10:20] Liao Fu'an: Will effectively supplement local governments' comprehensive financial resources by 400 billion yuan

Minister of Finance Liao Fu'an stated that the Ministry of Finance will effectively supplement local governments' comprehensive financial resources by 400 billion yuan. They encourage eligible localities to activate idle assets, strengthen the management of state-owned capital returns, make efforts to increase fiscal revenues, guide localities to lawfully and regulatively use budget stabilization funds and other funds to ensure the needs of fiscal expenditures.

[10:18] Liao Fu'an: Will successively introduce a targeted package of incremental policy measures in the near future

Minister of Finance Liao Fu'an stated at the State Council Information Office press conference that based on accelerating the implementation of established policies, the Ministry of Finance will successively introduce a targeted package of incremental policy measures in the near future focusing on stabilizing growth, expanding domestic demand, and managing risks. This package of incremental policies includes supporting local governments in resolving hidden debts, supporting large state-owned commercial banks to supplement core Tier 1 capital, supporting efforts to stabilize the real estate market, and increasing support and protection for key groups.

[10:17] Liao Fu'an: Will use local government tools to support stabilizing the real estate market

Minister of Finance Liao Fu'an stated at the State Council Information Office press conference that the Ministry of Finance will use local government tools to support stabilizing the real estate market【10:15】Lan Fo'an: Central Finance has a large debt space and deficit enhancement space

Minister of Finance Lan Fo'an stated that counter-cyclical measures have other policy tools under study, such as the central finance having a large debt space and deficit enhancement space.

【10:12】Lan Fo'an: Issuing special national bonds to support large state-owned commercial banks in capital replenishment

Minister of Finance Lan Fo'an stated that since the beginning of this year, the Ministry of Finance has adhered to an active fiscal policy, appropriately strengthened efforts, and improved quality. China's finance has sufficient resilience, and by taking comprehensive measures, it can achieve a balance between revenue and expenditure, and meet the annual budget target. The Ministry of Finance will issue special national bonds to support large state-owned commercial banks in capital replenishment.

【10:10】Lan Fo'an: Overall easing of local debt risks

Minister of Finance Lan Fo'an stated at the State Council Information Office press conference on October 12 that the overall easing of local debt risks has been achieved, and progress has been made in debt conversion work. He also mentioned that China's finance has sufficient resilience, and by taking comprehensive measures, it can achieve a balance between revenue and expenditure, and meet the annual budget target.

【10:00】Lan Fo'an: Issuance of new special bonds reached 3.6 trillion yuan from January to September

Lan Fo'an stated at the State Council Information Office press conference that the scale of general public budget expenditure for the whole year of 2023 reached 28.55 trillion yuan, maintaining a high level of expenditure intensity to provide favorable support for high-quality development.

Since the beginning of this year, the Ministry of Finance has adhered to an active fiscal policy, appropriately strengthened efforts, and improved quality. Actively expanding domestic effective demand, issuing new special bonds totaling 3.6 trillion yuan from January to September, supporting over 30,000 projects, with project capital exceeding 260 billion yuan.

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