Government to Speed Up Infrastructure Projects to Boost Market Growth
China is fast tracking 300 infrastructure projects with a value of 7 trillion yuan as policymakers are looking to speed up growth that are in danger of going below the seven percent mark. the Central Government has approved these projects as part of the 400 project venture with a 10 trillion yuan plan that will run from late 2014 all throughout 2016.
Analysts familiar with the projects asked not to be identified as the announcement is not yet made public. Also the National Development and Reform Commission will be assigned to oversee the projects hasn’t given any comments yet. Analysts say that he move is a sign that shows concern among officials that the planned shift to domestic consumption driven economy is still to produce enough momentum for growth. As this is part of the plans to stabilize growth and this will help boost market confidence.
Approvals are in contrast to past moves to boost growth using infrastructure n which the government gave the go signal to projects individually as they are part of the efforts in responding to a weak output. The funds for the projects will come from the central and local government, loans, state owned firms and the private sector as investment in the seven industries including oil and natural gas lines, clean energy, health, mining and transportation.