Fresh Omicron outbreaks across China are putting financial pressure on local governments and ‘limiting’ their ability to spend on infrastructure, a key driver of economic growth.
Heavy foreign outflows that have plagued China since February could speed up in coming weeks after the country’s yield advantage over US bonds disappeared, analysts say.
China’s central bank said in a draft law released on Wednesday that the existing legal framework to mitigate financial risks is disorganised and ‘lacks overall design’.
China’s finance minister Liu Kun says Beijing must ‘shoulder the responsibility’ for stabilising the economy, while setting an ‘appropriate deficit ratio’.
China’s local governments are pulling out all the stops to lure investment – especially in advanced technology – amid mounting economic challenges, including a slowdown in the property market.