China's Vice FinMin: Will appropriately increase investment under central government budget

China's Vice Finance Minister Wang Dongwei said on Thursday that they “will appropriately increase investment under the central government budget.”

Additional takeaways

2023 tax and fee cuts, rebates totaled 2.2 trillion yuan.

Expect fiscal revenue to continue to recover in 2024.

Will maintain a certain intensity in fiscal spending in 2024.

Fiscal policy will help expand domestic demand.

Meanwhile, another finance ministry official said that they “will implement structural tax cuts in 2024 and support tech innovation and manufacturing sector.”

Market reaction

The above headlines are putting a bid under the Australian Dollar, propping the AUD/USD pair back toward 0.6600. The pair is currently adding 0.12% on the day to trade at 0.6573.