“The central government still has quite large room to borrow and increase the deficit,” Lan said, without providing a time frame.
China promised new measures to support the property sector and hinted at greater government borrowing to shore up the economy, as authorities seek to put a floor under the country’s growth slowdown.
Local governments will be allowed to use special bonds to buy unsold homes, Finance Minister Lan Fo’an and his deputies announced at a briefing Saturday, without giving an amount. Lan hinted at room for issuing more sovereign bonds and vowed to relieve the debt burden of local governments, signaling a possible rare revision to the budget that could come in the next few weeks.
