7.5% GDP growth ‘ in reach’

Fine-tun­ing will con­sider vary­ing needs of ar­eas, sec­tors, NDRC of­fi­cial prom­ises


China’s top eco­nomic plan­ner ex­pressed con­fi­dence in achiev­ing the 7.5 per­cent gross do­mes­tic prod­uct growth tar­get this year through hard work af­ter the govern­ment de­cided to adopt fur­ther mea­sures to sta­bi­lize mar­ket ex­pec­ta­tions and re­lease en­ter­prises’ vi­tal­ity.

National De­vel­op­ment and Re­form Com­mis­sion Min­is­ter Xu Shaoshi showed his de­ter­mi­na­tion on Wed­nes­day in an in­ter­view with Xin­huanet. com, one day af­ter Pres­i­dent Xi Jin­ping vowed to guar­an­tee the year’s tar­get by fur­ther clar­i­fy­ing the govern­ment’s pol­icy stance for the sec­ond half of the year and con­firm­ing the di­rec­tion of on­go­ing struc­tural re­forms.

Xu stressed the need to main­tain “mod­er­ately abun­dant” mone­tary liq­uid­ity and ef­fi­ciently make use of credit and fis­cal cap­i­tal to sup­port the in­dus­trial econ­omy.

“Pol­icy fine-tun­ing will be likely at the right time,” he said.

“Di­ver­si­fied ad­just­ments that take into con­sid­er­a­tion the dif­fer­ent sit­u­a­tions of re­gions, in­dus­tries and en­ter­prises will be taken in the sec­ond half” to strengthen en­ter­prises’ con­fi­dence by main­tain­ing growth within a rea­son­able range and pre­vent­ing risks, Xu said.

For the next step of re­form, the min­is­ter also pledged the na­tion would launch demon­stra­tion projects for pri­vate funds to in­vest in in­fra­struc­ture con­struc­tion and pub­lic ser­vices, as well as elim­i­nate un­rea­son­able fees in bank­ing ser­vices.

A state­ment from the Po­lit­i­cal Bureau of the Com­mu­nist Party of China’s Cen­tral Com­mit­tee laid out its main strate­gies for the com­ing quar­ters on Tues­day. They in­clude in­creas­ing pub­lic con­sul­ta­tion, main­tain­ing ra­tio­nal in­vest­ment growth and sup­port­ing small and medium-sized en­ter­prises.

It said eco­nomic growth in the first six months of the year was “sta­ble” de­spite ex­tremely com­pli­cated do­mes­tic and in­ter­na­tional con­di­tions.

The coun­try’s econ­omy ex­pe­ri­enced 7.6 per­cent yearon-year GDP growth in the first half of the year. The sec­ond quar­ter growth slowed to 7.5 per­cent from 7.7 per­cent in the first quar­ter.

Lian Ping, chief econ­o­mist at the Bank of Com­mu­ni­ca­tions, said in the sec­ond half of 2013, it is un­likely to see a sub­stan­tial eco­nomic re­bound al­though the re­forms may ac­cel­er­ate.

“In­dus­trial en­ter­prises may see bet­ter con­di­tions in the sec­ond half if the in­vest­ment in in­fra­struc­ture con­struc­tion and pub­lic ser­vices can sup­port sta­ble eco­nomic ex­pec­ta­tions while ben­e­fit­ing smallscale busi­nesses,” said Lian.

He said the prob­lem of ex­ces­sive pro­duc­tion ca­pac­ity is still se­ri­ous and that it is hard to boost do­mes­tic con­sump­tion or pro­mote ex­ports over a short pe­riod.

Yao Wei, chief econ­o­mist in China with So­ci­ete Gen­erale, a French fi­nan­cial group, said the Po­lit­i­cal Bureau’s meet­ing in­di­cated lit­tle change from the bal­anced stance that has been com­mu­ni­cated to the mar­ket in the past few weeks.

The top lead­er­ship sig­naled only mod­est pol­icy eas­ing, prefer­ably in the form of eco­nomic re­struc­tur­ing and re­form, Yao said.

“Ex­cess credit growth will still be con­tained and there will be no large- scale fis­cal stim­u­lus. One im­pli­ca­tion is that ca­pac­ity con­sol­i­da­tion may speed up so that re­sources and cap­i­tal can be freed up from in­ef­fi­cient sec­tors.”

Ac­cord­ing to a sur­vey


Faced with an eco­nomic slow­down, the cen­tral govern­ment will im­ple­ment mea­sures to boost con­sumer spend­ing and push for­ward the ur­ban­iza­tion drive, a top eco­nomic of­fi­cial said on Wed­nes­day.

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