This could potentially deliver a GDP boost of 0.6%
Bloomberg reports, referring to a person familiar with the case, saying China is planning to cut the value-added tax covering the industry sector by 3% as part of measures to support the slow economy.
The reduction could be announced as soon as this week, with the NPC set to start tomorrow and continue until next week. The increase of 0.6% in GDP is, according to estimates by Morgan Stanley, which also estimates that the increase to the economy (cut amount) could be worth up to $ 90 billion.
About anything, this continues to show that Chinese authorities are still taking more proactive measures to support the economy and that they will certainly not let it fall freely. This should be a plus for risk benefits if anything else.