China vows to better coordinate fiscal, monetary policies
China will better coordinate its fiscal and monetary policies to help counter a slowdown in the economy, Liu Kun, a vice finance minister, said in remarks published on Thursday.
The government will keep economic growth within a reasonable range, ramping up fiscal policies while using prudent monetary policies flexibly and appropriately, Liu said in a speech published on the ministry's website.
A slew of senior government officials collectively assured jittery investors the government will act to stabilize the economy after the weeklong Lunar New Year holiday.
A rout in Chinese stocks last summer and the unexpected devaluation of the yuan CNY=CFXS in August have rattled global markets, raising concerns about the health of the world's secondlargest economy and Beijing's ability to steer it simultaneously through both a protracted slowdown and radical restructuring. Liu said that raising the fiscal deficit ratio and cutting taxes will become an apparent choice for stimulating growth. Fiscal spending is expected to be at a relatively high level this year, he said, adding that Beijing will set a reasonable quota for the local government debt swap program.