China’s financial commission denies tax cut rumour during key economic meeting
- Online claim said China’s leadership had decided not to cut taxes or fees during the ongoing Central Economic Work Conference
- One-sentence statement from the Financial Stability and Development Committee reflects Beijing’s eagerness to shore up fragile market sentiment
China’s powerful financial stability commission, led by Chinese President Xi Jinping’s top economic aide, on Friday publicly denied a market rumour that Beijing had no plan to cut taxes at this week’s key economic policymaking meeting.
The general office of the Financial Stability and Development Committee, which is located within the People’s Bank of China, said in a one-sentence statement that it has noticed online rumours about the ongoing Central Economic Work Conference and the talks that China’s leadership has decided not to cut taxes or fees “were contrary to the truth”.
It marked the first time the agency had reacted to a specific gossip, reflecting Beijing’s eagerness in stabilising market expectations.
It also showed that the government, which is fighting to keep a firm grip on economic information, is becoming more proactive in hitting back “rumours”.
Ding Shuang, chief Greater China economist at Standard Chartered, said it was an uncommon high profile clarification, given the high ranking of the financial stability committee.
