Chinese finance minister hints at increasing the deficit at highly anticipated briefing

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Lan Fo’an said such policies were still under discussion. 

China's Minister of Finance Lan Fo'an is holding a press conference on Saturday on measures to support the economy.

Analyst projections for how much fiscal stimulus is needed range from around 2 trillion yuan to more than 10 trillion yuan. Economists have said China needs additional fiscal support, but Beijing has yet to announce any, even in the latest flurry of high-level policy announcements.Analyst projections

Ting Lu, chief China economist at Nomura, cautioned in a note Thursday that any such stimulus would typically need approval by China's parliament, expected to hold a meeting later this month. He added that how any funds are used is just as important as the amount that's delivered — whether they only go to shoring upChina's retail sales grew only modestly over the last few months, and the country's real estate slump has shown few signs of turning around.

 

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