Chinese authorities broadening their scope - BNP

Analysts at BNP Paribas explained that faced with a severe economic growth slowdown and given the increasingly narrow manoeuvring room for monetary policy, the Chinese authorities have broadened their scope of action on the fiscal policy front. 

Key Quotes:

"Growth in public infrastructure investment is expected to strengthen in the short term, and a series of tax cuts is being planned to stimulate corporate and household demand. 

Public finances are deteriorating slowly due to slower growth in fiscal revenues, higher spending and the excessive debt of local governments and state-owned enterprises.

Moreover, contingent liabilities associated with credit risks in the financial sector are also increasing."