Hong Kong CNN —China has set aside 200 billion yuan ($28 billion) for investment projects by local governments this year, as it promised to meet its own ambitious economic growth targets.
China announced a 5% target growth rate in March, but a series of economic data over the summer has been so weak that economists were worried the goal might be missed.
To help local governments struggling with mountains of debt, Beijing will provide 100 billion yuan ($14 billion) from the central government’s budget and an extra 100 billion yuan for investment projects, Zheng said.
Nevertheless, investors were disappointed at the lack of details on new fiscal measures,” Fred Neumann, chief Asia economist for HSBC, told CNN.
Fiscal measures, on the other hand, can include the use of taxation or other measures to impact public spending more directly.
Persons:
” Zheng Shanjie, Zheng, Xi Jinping, Fred Neumann, What’s, Jia Kang, “, … Jia Kang, –, Xi, ”
Organizations:
Hong Kong CNN, National Development, Reform Commission, HSBC, CNN, “, Ministry of Finance, Citi, People’s Bank of China
Locations:
China, Hong Kong, Beijing, Asia, Shanghai, Shenzhen