Reuters reports, citing four policy sources, that trillions of yuan of fiscal stimulus could be unleashed by China to revive its economy, which is expected to contract for the first time in four decades due to coronavirus pandemic. At the same time, the country's planned 2020 growth target could be lowered.

The aim of the ramp-up is to spur infrastructure investment via 2.8 trillion yuan ($394 billion) of local government special bonds. As a result, the national budget deficit ratio could increase to record levels, the sources said.

China is considering proposals to cut its economic growth target for 2020 to as low as 5% from around 6% agreed in December.