China's overall macro policy mix is expected to stay accommodative in H2 2015.

More fiscal and monetary policy easing is expected in H2 2015 to support a near-term stabilisation. 

In particular, we expect fiscal policy to be more expansionary with increasing central and local government spending on infrastructure investment. 

The State Council announced the launch of more investment projects, including a three-year housing renovation plan; more central government-led investment in rural power grid, grain storage facilities, and waste water treatment; and the acceleration of seven major investment projects including those involving water conservancy and railways.