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0435 GMT - China's budget plan signals that a proactive fiscal approach should continue in 2026, with the central government expected to shoulder more spending responsibilities, HSBC economists say in a note. The budget highlights fiscal reforms aimed at addressing the mismatch in responsibilities and resources between the central and local governments, with greater policy clarity at the national level expected to improve fiscal policy efficacy and support initiatives including the crackdown on price wars and development of a unified national market. Meanwhile, special local government bonds will be used to fund major projects, swap hidden debts and clear government arrears, helping ease liquidity pressures and supporting a recovery in business confidence and manufacturing investment. China is also expected to broaden its consumption tax, which would diversify local revenue sources, HSBC adds. (jason.chau@wsj.com)
(END) Dow Jones Newswires
March 16, 2026 00:35 ET (04:35 GMT)
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