Wen Shifts Focus from Inflation to Growth
The central government will prioritize economic growth and spur consumer spending by adopting an active fiscal policy and a prudent monetary policy, premier Wen Jiabao said, without mentioning concerns about inflation, which eased a bit in April. The remarks imply upcoming stimulus plans as well as more bank loans and public works, economists argue.
Private Capital Invited to Railway
China will encourage the private sector to invest in its railways, the Ministry of Railways said. A document from the ministry states it will try raising funds for railway projects, back railway firms going public, issue railway bonds and encourage insurers to invest in railways. The ministry has had difficulty securing financing since a deadly high speed train crash last July. Fixed asset investment in railroads contracted 48.3% year on year to ¥89.6 billion in the first four months of this year, slightly slower than the 51% recorded for the first three months.
China to Step Up QFII Approval
China will work to speed up approvals of qualified foreign institutional investors (QFIIs) looking to buy into its domestic securities, as part of reforms to add depth to the country's capital markets, Bloomberg reported, citing the nation's foreign exchange regulator, which has already accelerated approvals for long-term foreign investors and more than doubled quotas for QFIIs to $80 billion. China is mulling amendments to QFII rules to lower entry requirements, broaden the investor types and relax restrictions on quotas and investment scopes.
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