PBOC: China to continue pro-active fiscal policy in 2016

In its latest financial stability report published this Monday, the Chinese central bank, PBOC, noted that China is expected to moderately expand its fiscal policy.

Key Points:

Will ensure ample liquidity via OMO, RR, rates

China to boost reforms, opening up of financial sector

China to continue pro-active fiscal policy in 2016

Will prevent systemic, regional financial risks

Will lower taxes and fees for businesses

Will further lower refinancing costs

Sees further downside pressure on the economy

Will boost yuan two-way flexibility

International financial market getting more volatile

To further open up capital account

Credit risk in bond mkt is under control