Policy efforts focus on stability
Government to stabilize credit support, step up infrastructure spending in targeted areas
More efforts to stabilize investment growth and credit support are expected to come out soon to assuage concerns over slowing growth in investment clouding the economic outlook, after a meeting held by top decision-makers set the tone for the policy trend in the second half.
With clear policy signals set in July calling for more efforts to keep investment afloat, some commercial banks, including Industrial and Commercial Bank of China, issued notices to local branches to quicken up the pace of issuing credit to boost infrastructural construction, in particular to support transportation projects and home-renovation projects to improve living conditions for the poor, according to documents viewed by China Daily.
“Investment willingness at local levels remained low in the first half. Some reasons include aggressive efforts in the first half to reduce government debt risks, strengthened efforts to monitor infrastructure project quality, and relative tight liquidity. The government is aware of that,” said an official with the National Development and Reform Commission who declined to be identified. “More documents will come out to increase appetite for investment.”
Targeted measures to boost infrastructure construction came after a meeting of the Political Bureau of the Communist Party of China Central Committee set the tone for policy stances in the second half.
The government will stabilize investment growth, stepping up infrastructure investment in targeted areas, according to a Xinhua News