Breaking News

EU Fines Three Banks in Swiss Franc Libor Antitrust Cases
Tweet TWEET

China Premier Wants Fiscal Funds to Stabilize Economic Growth

Photographer: Nelson Ching/Bloomberg

China's Premier Li Keqiang. Close

China's Premier Li Keqiang.

Close
Open
Photographer: Nelson Ching/Bloomberg

China's Premier Li Keqiang.

Chinese Premier Li Keqiang said fiscal funds should be used to redevelop shantytowns and improve basic infrastructure as part of efforts to stabilize the world’s second-largest economy.

Money should also be allocated to transform the structure of the economy to focus more on domestic consumption, the State Council, or Cabinet, said in a statement on its website yesterday, after a meeting led by Li.

Recent economic data signal the nation’s growth slowdown may be deepening. China’s service industries expanded at the slowest pace in nine months in June and two manufacturing indexes declined last month, according to data this week. Banks including Goldman Sachs Group Inc. have pared their growth projections this year to 7.4 percent, below the government’s 7.5 percent goal disclosed at the March conference at which Li became premier.

The government yesterday also approved a trial plan to set a free trade zone in Shanghai to boost the economy and deepen reforms.

Shanghai, China’s financial hub, plans to set up a pilot free trade zone in the Pudong district this year, the first of its kind on the mainland if approved, the official Xinhua News Agency reported in January. The zone would encourage cross-border financing and international trade settlement.

China already has a financial zone in the Qianhai district of the southern city of Shenzhen. The National Development and Reform Commission said last year companies there will be encouraged to sell yuan-denominated bonds in Hong Kong and to experiment with cross-border loans in the Chinese currency.

To contact Bloomberg News staff for this story: Bonnie Cao in Shanghai at bcao4@bloomberg.net

To contact the editor responsible for this story: Allen Wan at awan3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.