China’s former central bank adviser, Yu Yongding, is urging for an urgent fiscal policy package to boost market confidence following recent stimulus measures. He emphasized the need for new actions from the Ministry of Finance to further enhance the stimulus impact.
Yu’s call for more fiscal support comes as the focus shifts to Beijing’s potential rollout of additional economic measures after positive market reactions to the recent aggressive rate cuts by the central bank.
Yu believes that while the stimulus package has yielded positive feedback, stronger fiscal policies are necessary for its effectiveness. Achieving the government’s 5% growth target for the year may prove challenging without further support measures, according to Yu.