China is accelerating 300 infrastructure projects valued at 7 trillion yuan (US$1.1 trillion) this year in a bid to shore up the economy’s slowing growth.
The projects were approved as part of a broader 400-venture, 10 trillion yuan plan to run from late 2014 through 2016, Bloomberg News reported, citing unnamed sources.
“It’s part of China’s efforts to stabilize growth, and the news will help to boost market confidence,” Julia Wang, a Hong Kong-based economist with HSBC Holdings Plc (00005.HK), was quoted as saying. “Infrastructure investment will continue to be a major driver for China’s economic growth.”
The projects will be funded by the central and local governments, state-owned firms, loans and the private sector, the new agency said.
The investment will be in seven industries including oil and gas pipelines, health, clean energy, transportation and mining.
The National Development and Reform Commission is also studying projects in other industries in case the government needs to provide more support for growth,
China has sought ways to stimulate growth without resorting to full-blown stimulus as it seeks to keep a lid on total debt that is now more than 200 percent of gross domestic product.
The central bank added liquidity into the banking system last year and announced an interest-rate cut on Nov. 21, the report said.
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