According to foreign news sources, China plans to set a lower economic growth target for next year
which will be changed from 6% to 6.5% this year to an increase target of about 6% next year, mainly by increasing national infrastructure spending to counteract a larger Economic growth slowed.
Reuters quoted three sources as saying that the Central Economic Work Conference, which was recently concluded in Beijing, had many leaders in the Mainland supporting an economic growth target of about 6% next year
Given that the economy is expected to grow about 6.2% this year and nearly 6% next year, it is expected to be sufficient to achieve this goal, and it is believed that the target will be announced in early March next year.
The report also pointed out that next year will be an important year for the Communist Party of China, which will achieve its goal of doubling its GDP and income within the ten years before 2020; While the annual budget deficit has risen, there is a chance to keep it within 3% of GDP from 2.8% of GDP this year.
The source said that the government aims to increase infrastructure investment by allowing local governments to issue more special bonds next year, including allowing local governments to issue about 3 trillion yuan (RMB, the same below) special bonds next year
In addition, the People’s Bank of China may further relax its policies to encourage lending and reduce corporate financing costs, but it will avoid fuelling real estate speculation and driving up inflation. Sources said that fiscal policy will provide key support for the economy. Once the Chinese economy slows sharply, small businesses will be under greater pressure, which will then hit small banks and affect the financial industry.