China NDRC: Government must implement proactive fiscal policy

At a press conference on Monday, China National Development and Reform Commission’s (NDRC) – State planner officials noted their take on the fixed asset investment and property markets, MNI reports

Key Quotes:

Downward pressure on fixed asset investment is heavy and the government must implement proactive fiscal policy, expand aggregate demand and step up efforts to improve weak sectors of the economy in order to boost investment and let it play a bigger role in stabilizing economic growth. Fixed asset investment growth slowed to just 9.0% during the first half, the slowest pace in 16 years, largely as a result of slowing private investment.

Zhang Yong, deputy head of the NDRC, said at a press conference that private investors want to maximize investment returns and with traditional industries facing difficulties, it's natural for them to slow investment and retreat to the sidelines.

On the property market, Xu Kunlin, head of the Fixed Asset Investment department of NDRC, said there would be relatively high growth in sales in the second half with prices remaining stable.

Xu said mortgage loans have jumped 57% on year during the first half to CNY1.12 trillion, which has helped the liquidity condition of property developers.