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S&P: China to unveil additional stimulus to boost industrials

China is expected to roll out additional stimulus in the rest of the year to boost domestic industrial companies amid economic growth concerns and trade disruptions, but the scale of the additional measures would remain moderate, S&P Global Ratings said in a Sept. 17 report.

Recent quarterly rounds of stimulus from the Chinese central government have been moderate, given fiscal constraints, the rating agency said.

Additional stimulus from local governments is expected, though local governments' fiscal budget constraints stemming from cuts to fees and taxes in the first half mean the stimulus will be moderate.

Annual growth in China's retail sales and industrial output missed estimates in August, prompting expectations that the country will pursue more stimulus measures in a bid to shore up its slowing economy.

Local governments are seen further easing restrictions on license plates to support the auto sector, while the central government is likely to continue efforts to boost infrastructure investment, according to the report.

S&P Global Ratings projects full-year infrastructure investment to recover gradually as a result of previous measures, including the recent move to expand the scope of special-purpose bonds.