Decline of companies' profits may lead to tax cuts in China

Note: This section contains information in English only.
Source: Bloomberg
Drop of net income of half of 760 listed Chinese companies may pressure Premier Wen Jiabao and the government to lower corporate taxes. In order to stop the second largest world economy from losing pace of expansion  the government has to implement more measures on top of boosting investment and monetary stimulus, according to a senior economist at Credit Agricole, Dariusz Kowalczyk. The policy makers should loosen policy through fiscal measures and cut of reserve requirements for banks, he added.

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