China ex central bank adviser proposes $1.4 trillion in stimulus measures

China ex central bank adviser proposes $1.4 trillion in stimulus measures

China should introduce a basket of measures, focusing on enhancing social protections, buying unsold apartments for affordable housing and speeding up urban construction, Liu Shijin, former vice president of Development Research Center of the State Council, told the China Macroeconomy Forum, the Securities Times reported.

Liu said the world’s second-biggest economy should not copy the quantitative easing of developed countries because China’s macroeconomic policy should aim at ensuring stability and balance during a “medium-speed growth stage”.

Chinese policymakers will likely step up measures to at least help the economy meet this year’s increasingly challenging growth target of roughly 5%, analysts and policy advisers have said, with a sharper focus on boosting demand to fight persistent deflationary pressures.

August economic data showed momentum in China’s export-led economic recovery remains frail. Domestic demand struggled to gain traction amid persistent deflationary threat.

($1 = 7.0505 Chinese yuan renminbi)

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