The Chinese government should increase its fiscal deficit and support the financing of construction projects as soon as possible, so as to prop up the growth of infrastructure investment, according to a report published by Zhang Bin, a senior researcher at the China Finance 40 Forum, The Paper reported.

The report also suggests that new financial services and products are required, so as to fulfil residents’ needs of financial asset allocation and corporate financing needs.

For the residents, there is a short of long-term pension investment products with moderate gains and risks. Meanwhile, corporates need funds with high risks and high returns that can be used for long-term investment.

For the government, the most lacking is medium and long-term funding to boost infrastructure.

The report also said the government should ease rising housing prices and take care of the needs of low-income groups, mainly by increasing housing supply. And it is not wise to curb overall credit expansion just for containing high home prices in some cities.