China seeks economic boost as data disappoints - Page 2 of 2 - Capital Business
Connect with us

Hi, what are you looking for?

China store/AFP

World

China seeks economic boost as data disappoints

Exporters complain a stronger yuan is hurting their overseas sales by making their products more expensive.

China’s exports slipped 3.1 percent to $174.32 billion in June, according to Customs figures, another sign of a further slowdown in the Asian economic giant.

Lu Ting, an economist with Bank of America Merrill Lynch, called the new policies a “small stimulus”.

“Premier Li’s team has been surely working around the clock to arrest the slowdown,” he wrote in a research note on Thursday.

“These three measures will have limited direct impact on boosting aggregate demand in the short term, but they can surely help boost confidence,” Lu said.

Despite the persistent sluggishness in the domestic economy, China’s finance chief earlier this month ruled out the possibility of introducing any major stimulus this year and said the country would focus on structural reforms.

“This year, China will not introduce any large scale financial stimulus policies but will fine tune its policies to promote economic growth and employment,” finance minister Lou Jiwei said.

China in 2008 launched a nearly $600 billion stimulus spending package to boost its economy during the depths of the global financial crisis.

“The (latest) move, obviously not a massive stimulus, is aimed at stabilising growth rather than stimulating the economy for a strong rebound,” said Ma Xiaoping, a Beijing based economist for HSBC.

Advertisement. Scroll to continue reading.

“It’s incorrect to interpret this as a turnaround in policy,” she said.

In 2011, China launched policies to facilitate financing for small firms and encourage development of private financing.

In late 2012, China’s top economic planner approved around seven trillion yuan ($1.1 trillion) worth of infrastructure projects, including railways and airports.

Pages: 1 2

Advertisement

More on Capital Business