New China Stimulus Tranche Less Than Expected
The third investment from the government stimulus package will be $10 billion, smaller than anticipated, Reuters reports:
Investment in sectors that have stronger prospects will be scaled back, an unnamed official at the National Development and Reform Commission, the country’s top planning agency, was quoted as saying by the Chinese-language Economic Observer.
It did not specify any sectors but said that the government would continue to lend ample support to those in which private investment remained insufficient.
The China Securities Journal had reported last week that the central government would allocate more than 130 billion yuan in the third tranche.
The smaller investment reflected adjustments to the stimulus program and did not mean that the central government’s finances were under pressure, the Economic Observer cited the planning official as saying.
See also a report from China Daily.