China's Liao Min flags incremental fiscal support as slowdown broadens

The absence of concrete numbers or a timetable disappointed some market participants. A trader at a European bank in Hong Kong said: "The market was looking for something more concrete, a number or a date. Instead they got the same message: we will do something, not yet."

Chinese equities edged lower Friday afternoon. The Shanghai Composite slipped. Hong Kong's Hang Seng Index fell 0.3%, led by property and materials shares. Copper futures eased in early Asian trading, and the Australian dollar gave up gains, as traders parsed the lack of specific measures.

Liao's emphasis on planning fiscal resources over a longer cycle points to continuity in that strategy, several analysts said. The finance ministry appears intent on preserving the ability to respond to a sharper downturn rather than exhausting its fiscal capacity early. With growth momentum weakening across a broad range of indicators in July, the coming months will bring close attention to whether "timely" support translates into real new spending, tax relief or consumption measures, and how quickly any such steps arrive relative to the pace of the slowdown.

China's leadership had already flagged a more supportive posture toward the economy in late July, discussing the case for fresh stimulus after growth decelerated faster than expected. Officials stopped short of committing to aggressive new measures at that time. Liao's comments suggest the finance ministry is positioning for incremental action, not a one-off blast of spending.

"The market was looking for something more concrete, a number or a date," the trader said. "Instead they got the same message: we will do something, not yet."