China eyes support for consumer, private sectors as growth falters

  • 📰 inquirerdotnet
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 86%

Finance Finance Headlines News

Finance Finance Latest News,Finance Finance Headlines

China will roll out more stimulus to support a slowing economy this year, but concerns over debt and capital flight will keep measures targeted at shoring up weak demand in the consumer and private sectors, sources involved in policy discussions said.

However, policymakers will remain wary of aggressive support measures for property, unwilling to fan speculative real estate investment, especially in big cities, after massive oversupply in the sector.

Another source said a cut to the People’s Bank of China’s reserve requirement ratio was increasingly possible. Thursday’s data showed private fixed-asset investment fell 0.1 percent in January-May from a year earlier, a sharp contrast to the 8.4 percent rise in state-sector investment.Local governments are likely to quicken bond issuance in the coming months to fund infrastructure projects, and authorities may give more support to consumers, especially for purchases of cars and home appliances, policy insiders said.

China remains on track to hit its 2023 growth target of around 5 percent, versus last year’s 3 percent increase, but activity in recent months has been weaker than expected and policy support is needed to restore momentum amid fears of job losses and local financial stress, policy insiders said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

China’s economy slows in May, firming case for more supportChina’s economy stumbled in May with industrial output and retail sales growth missing forecasts, adding to expectations that Beijing will need to do more to shore up a shaky post-pandemic recovery. | Reuters
Source: inquirerdotnet - 🏆 3. / 86 Read more »