China’s top economic planners emerged from an annual closed-door economic meeting to declare that they will continue their stimulative policies.
This comes despite fears that the economy is overheating.
Xinhua: China would continue to adopt the proactive fiscal policy and moderately easy monetary policy next year and endeavour to improve the quality of economic growth, participants at the Central Economic Work Conference agreed Monday.
Chinese President Hu Jintao and Premier Wen Jiabao addressed the meeting, which is held once a year to set the tone for economic development during the next year, said a statement from the conference.
China Daily: The emphasis, however, is shifting to promoting consumer spending and private investment, rather than the state-led investment of this year’s recovery program, which has focused heavily on construction of railways, roads and other public works, newspaper China Business News and other reports said.
The problem is that many of China’s stimulative policies are preventing the above economic transformation from actually happening. Yet in the end, they really don’t have any choice but to declare that the same level of stimulus will continue, even if in reality they start to cut it back.
Regardless, Shanghai’s CSI 300 index seems to happy with today’s assurance.
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