China’s premier pushed for debt-for-equity swaps and more aggressive measures to reduce the burden on struggling local governments as Beijing tries to capitalise on improved indications for economic growth in the first quarter, reported the Financial Times. Premier Li Keqiang said on Monday that some localities would be allowed to reduce contributions to social security funds while all central budgetary investment would be allocated in the first half. The remarks were published after data released on Monday showed some easing in China’s producer prices deflation. Last month’s PPI, a key gauge of the woes plaguing China’s industrial and export sectors, dropped 4.3 per cent.
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