In light of the global changes brought by the Brexit, what are the adjustments needed and how should China's economic policy responds to Brexit?

Given that there is not only insufficient impetus driving economic growth but there is also an increased risk of corporate defaults along with other less favorable factors, the research team at ANBOUD Consulting is of the view that in the second half of the year, China will pursue a more proactive fiscal policy and increase the leverage ratio for both household and government sector.

At the same time, China will continue to maintain a neutral monetary policy that is moderately loose.

The central government will expand fiscal expenditure to issue bonds, to help personnel that were laid off during the course of cutting overcapacity, to increase the funding for public services and to increase the issuance of bonds by local governments.