China's fiscal revenue growth slowed in June, while public spending returned to a proactive level. Xia Cheng went to the finance ministry's press briefing to find out what's being planned for fiscal support on the economy.

China's fiscal revenues grew slower in June, as tariffs and non-tax revenues dropped. The government income gained 3.5 percent, a third of the pace a month ago.

Meanwhile, China's public spending shot up by 7 percent, returning to the pace in April after edging up only half a percent in May. That's because the government was more aggressive in funding environmental protection and public technology projects.

For the first half of the year, China earned 10.6 percent more fiscal revenues, faster than a year ago but slower than in the first five months. And the tax revenue growth may slow further in the second half of the year.

LOU HONG CHIEF OF TREASURY DEPARTMENT CHINA'S MINISTRY OF FINANCE "We do see more factors affecting our fiscal revenues ahead, such as the unstable and uncertain international trade. And the tax and fee cuts in the government work report will start to show effect in the second half of the year. But the overall fiscal revenues will be stable and out targets will be met."

And the demand for short-to-mid term local government debt is high when total issuance drops and coupon rates hike.

LOU HONG CHIEF OF TREASURY DEPARTMENT CHINA'S MINISTRY OF FINANCE "The average coupon rate for local government debt is 3.98 percent in the first half of the year, up 0.03 percentage points. The average maturity is 5.92 years, about 4 months shorter than a year ago. The issuances further matched the market preference, with more one-year to five-year debt and less 7-year and 10 year bonds."

XIA CHENG BEIJING "For the rest of the year, China will continue to cut taxes and fees, and push through the industrial de-capacity drive. That would take a toll on fiscal revenues. Meanwhile, the market is cautious about China's economic resilience and domestic demand as global trade environment is getting murkier. That would require the finance ministry to step up its gain with more proactive fiscal policy. XC CGTN BEIJING."