China central gov't cashes in another $19 bln for stimulus plan 2009-02-03 17:02:27   Print

Special Report: Global Financial Crisis

Related: Wen says China confident of weathering financial crisis

Related: Wen confident that China to keep growth at about 8% in 2009

°§Central gov't has launched a new stimulus plan totaling 130 bln yuan to boost its economy.
°§China's economic growth slowed to 6.8 percent in the fourth quarter of 2008.
°§The gov't is hoping to bolster the slowing economy with huge investment from central gov't.

    BEIJING, Feb. 3 (Xinhua) -- China's central government has launched a new stimulus plan totaling 130 billion yuan (19 billion U.S. dollars) to boost its economy, an official of the National Development and Reform Commission (NDRC) said on Tuesday.

    The fund is the second batch of investment from the central budget following a 100 billion yuan allocated in the fourth quarter of 2008. Both were included in the country's 4 trillion yuan economic stimulus package announced in November.

    Chinese Premier Wen Jiabao said Tuesday the 130 billion yuan had been put in place in terms of real funds and on what projects the money will be spent during an interview with the London-based Financial Times.

    China's economic growth slowed to 6.8 percent in the fourth quarter of 2008, dragging down the annual rate to a seven-year low of 9 percent, as the global financial crisis takes a toll on the national economy.

    The government is hoping to bolster the slowing economy with huge investment from central government, followed by more from local governments and non-governmental sectors.

    The NDRC official, who spoke to Xinhua Tuesday morning on condition of anonymity, confirmed the latest 130 billion yuan investment, but declined to unveil detailed plans of the investment before the commission's official announcement.

    However, Tuesday morning's 21st Century Business Herald rolled out specific plans with 28 billion yuan to provide housing for low-income earners and 31.5 billion yuan for public facilities, such as electricity, water and road construction in rural areas, citing an unidentified source.

    The paper also said 17 billion yuan would go to health and education sectors, 11 billion to environmental protection projects, 15 billion to economic restructuring, and the remaining 27.5 billion yuan to unspecified big infrastructure projects.

    Of the earlier 100 billion yuan, 10 billion yuan will be spent on housing projects for low-income families, 34 billion on rural infrastructure projects, 25 billion on large infrastructure projects such as railways, roads and airports, 13 billion on grassroots health, education and cultural projects, 12 billion on energy conservation and environment protection projects, and the remaining 6 billion on innovation and industrial restructuring, according to the NDRC.

    The commission, or the country's economic planner, said in November that 1.18 trillion yuan would be arranged for investment from the central budget by the end of 2010, which it said would mobilize a total of 4 trillion yuan in investment across the country within two years.

Chinese shares gain 2.44% on economic stimulus prospects

BEIJING, Feb. 3 (Xinhua) -- Chinese shares went up 2.44 percent on Tuesday amid a booming confidence. Investors expected a market rally after Premier Wen Jiabao repeated vows of more stimulus plans to boost the economy, dealers said.

The Shanghai A-share index rose 49.12 points, or 2.44 percent, to close at 2,060.81, while the Shenzhen Component Index gained 178.8 points, or 2.52 percent, to finish at 7,266.41. Full story

China's policy stimulus to spur car sales in year of ox

SHANGHAI, Jan. 28 (Xinhua) -- Due to bigger-than expected cut in fuel prices at the end of 2008 and halved car purchase taxes in effect just before the Lunar New Year, China's auto industry can expect the policy stimulus to make the year of the ox a bullish one for sales growth, which was in a ten-year low in 2008.

"With the recent policy changes on fuel price, car purchase tax and fees, I can save more than 8,000 yuan (1,170 U.S. dollars) to have a car," said Wang Yong, who just bought a new POLO sedan produced by Shanghai Volkswagen Co. Ltd. Full story

China mulls on stimulus package for oil and petrochemical industry

BEIJING, Jan. 22 £®Xinhua£© -- China is likely to unveil its stimulus package for oil and petrochemical industry in the Lunar New Year, according to the China Petroleum and Chemical Industry Association (CPCIA) on Tuesday.

Sun Weishan, vice secretary-general of CPCIA, told Xinhua, "The draft of this stimulus package hasn't been completed or examined by expert panels and it will be submitted to the State Council for approval later." Full story  

China unveils support package to auto, steel industries

BEIJING, Jan. 14 (Xinhua) -- China's State Council unveiled a long-awaited support package for the auto and steel sectors Wednesday to boost the two "pillar industries".

Under the plan, the government will lower the purchase tax on cars under 1.6 liters from 10 percent to 5 percent from Jan. 20 to Dec. 31 in a bid to stimulate sales. Full story

China to support 9 crisis-stricken industries

BEIJING, Dec. 19 (Xinhua) -- China must take more powerful and effective policies to support industrial development, the country's vice premier Zhang Dejiang said at a work meeting concerning national industry and information technology on Friday.

"A stable and rapid industrial development is essential to the country's overall economic advance," Zhang said. Full story

Editor: Wang Guanqun
Related Stories
China's policy stimulus to spur car sales in year of ox
China mulls on stimulus package for oil and petrochemical industry
China mulls on petrochemical stimulus plan
Chinese shares gain more than 3% on prospect of fresh stimulus policies
Home China
  Back to Top