With Chinese economic growth pulling back and recent problems in its markets, BRICSPOST is reporting that China is thinking about a new three year fiscal stimulus program. Below are a few quotes from the article.
-----------------------------------------------------------------------------------------------------"China is considering more than 1 trillion yuan in fiscal stimulus over the next three years, according to a latest report from a top Chinese investment bank, the China International Capital Corporation (CICC). China holds significant firepower that it could unleash to boost the world’s second-largest economy.
A total of 1.2 trillion yuan ($188 billion) to 1.5 trillion yuan may be taken from the government coffers to replenish capital for investment projects, mainly those already approved by the authorities, the investment bank estimated.
The move comes as China’s economy is still growing at its slowest pace in 25 years with little sign of an immediate turnaround even after months of monetary easing.
CICC said in its report that the stimulus is likely to drive a total potential investment of 5 trillion yuan to 7 trillion yuan in the next three years, or 2.5 per cent to 3.4 per cent of the 2015 GDP each year.
Investment projects will be funded by policy banks and commercial lenders and private investors via public-private partnership.
The report came after China’s Ministry of Finance on Tuesday put forward multiple fiscal policies aimed at stabilizing growth, such as coordinating funds to accelerate project construction, activating idle money and widening tax breaks."
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