China will step up policy support to offset pandemic impact - state planner

China will use tools such as RRR cuts, interest rate cuts and lending to keep liquidity reasonably ample and guide market rates lower, the head of the state planning agency He Lifeng said on Wednesday.

On the fiscal policy front, the budget deficit ratio would be raised appropriately this year while the quota for local government special bonds would be increased significantly, said He from the National Development and Reform Commission (NDRC). China would also issue special treasury bonds dedicated to virus-fighting efforts, said He.

Authorities will firmly expand domestic demand and step up investment in infrastructure projects, said He in a statement on NDRC's website.