However, analysts still expect some mild stimulus measures from the ministry, including an increase to the fiscal deficit ratio from the current 3 per cent, more issuance of ultra-long special treasury bonds and local government bonds as well as tax cuts.
The ministry presented a number of changes at the one-hour conference intended to aid localities and the financial system, including raising debt ceilings and tapping funding from an unused government bond quota, fiscal support for the property market and capital replenishment for major state-owned banks.
Cash-strapped local governments could rely on a total of 2.3 trillion yuan (US$325.3 billion) in special bond funding for the last three months of the year, said finance minister Lan Foan.
The central government will also introduce a one-time, large-scale debt ceiling increase to swap local governments’ hidden debts, which the minister called “the most powerful measure to support debt reduction introduced in recent years”.