It is a big probability event that this year's public budget deficit will expand and some of the institutions predict that the budget deficit in 2016 will expand to 3% while ANBOUND’s research team believes that China’s deficit-to-GDP ratio could be revised up until 4.5%.

However, given that the economic environment in China is not good, generally, the corporate profitability level has declined and the effectiveness of the proactive fiscal policy might be discounted significantly, it is hard to prop up the Chinese economy with government investment alone.

In addition to the proactive fiscal policy, China still have to further the opening up of its market and mobilize more social capital into the economy, particularly the real economy.