China plans more support for economy


Posted at Sep 02 2019 08:08 AM

A woman crosses a street in the Central business district in Hong Kong, China August 22, 2019. Thomas Peter, Reuters

BEIJING - China plans to provide more support for its economy, including investing in infrastructure projects and regional development, while maintaining a prudent monetary policy with "reasonably" ample liquidity, the State Council said on Sunday.

As the world's second-largest economy weathers its biggest slowdown in decades, the State Council said the government aimed to better integrate fiscal, financial and monetary policies, deepen capital market reforms and further open up the financial sector.

"We attach great importance to the development of infrastructure, high-tech, traditional industrial transformation, social services and new growth regions," the State Council said in a statement following a meeting of the Financial Stability and Development Commission (FSDC) chaired by Vice Premier Liu He on Saturday.

China's economy faces pressures from a bruising trade war with the United States. The 2 countries began imposing additional tariffs on each other's goods on Sunday, the latest escalation in the trade dispute, despite signs that talks would resume some time this month. 

China's vast manufacturing sector shrank in August for the fourth month in a row, data showed on Saturday, although the services sector picked up for the first time in 5 months.

The State Council said the government would also encourage banks to use more innovative tools to replenish capital through multiple channels, but did not elaborate.