... While authorities won’t unleash the same flood of credit that followed the 2008 financial crisis, more targeted measures to get money flowing to jump start infrastructure projects is on the way. Recently announced measures also include a tax cut for vehicle purchases and a reduction in the minimum down payment for first-time home buyers. And unlike global peers, the People’s Bank of China still has room to cut interest rates.
"We expect the government to continue to take additional incremental measures to ensure that growth doesn’t deviate too much from its targets," said Louis Kuijs, head of Asia economics at Oxford Economics Ltd. in Hong Kong. "We expect these measures to focus largely on shoring up domestic demand, with probably gradually a greater role for fiscal policy steps outside the infrastructure domain."