Analysts say that Chinese consumers will become more confident to spend during this holiday season and the ones to follow as China aggressively cuts personal income taxes and the overall fiscal burden for the economy. At the same time, the market believes that China will rely on fiscal stimulus for the economy in 2019. CGTN's Xia Cheng went to a Ministry of Finance press conference on Monday to find out what all of that means for your money.  

The Ministry of Finance on Monday elaborated on China's new personal income tax policy. The cuts are considered aggressive as people who earn less than 10 thousand yuan, or 16 hundred US dollars, a month will pay almost no tax, while those in the second tier of monthly earnings of 20 thousand yuan, or about 32 hundred dollars, will have a 70 percent tax reduction.

And expats will have bigger room for tax waiving.

Behind the rhetoric is a more proactive policy tone.

CHENG LIHUA VICE FINANCE MINISTER OF CHINA "Main measures include value added tax reduction to support the real economy, more precise spending in important sectors and stricter control on day to day expenses."

CHENG LIHUA VICE FINANCE MINISTER OF CHINA "The gate for local government debt issuance will be more open with higher debt level limit. The Central Economic Work Conference has made it clear that there will be much more special purpose bond issuance."

The market already is pricing in the risk of a China slowdown in 2019 because of trade fears and domestic consumption concerns.

But Dan Wang from The Economist Intelligence Unit says there's no need to be overly worried.

The private sector also won't be left out of the fiscal stimulus.

China is likely to favour fiscal stimulus over monetary easing for the year to come.

Some analysts believe that China's central bank is tied up in widening yield spreads with the US that pressure the yuan.

That means the PBoC isn't in a good position to loose the monetary strings just yet.

And it is why China will continue the fiscal spending and infrastructure investment, with a potentially higher target for a fiscal deficit.

XC, CGTN. BEIJING.