Banks to support China's state budget

China’s government has announced far-reaching plans to bolster the economy through fiscal policy measures. However, the government’s ability to employ an expansive fiscal policy is weakened significantly by reduced fiscal revenues caused by the economic downturn. Therefore, the government has now turned to state-owned financial institutions, asking them to contribute a higher percentage of their profits for fiscal use. This measure, however, can only work as a temporary solution, buying more time for the government to find ways to generate a more sustainable flow of fiscal revenues.​

Last updated: 24. July 2025