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Monday, August 25, 2008

China considering 370 bln yuan economic stimulus package

With billons of yuan of surplus, the Chinese government should be able to afford this stimulus package, unlike USA.

China considering 370 bln yuan economic stimulus package

http://www.forbes.com/afxnewslimited/feeds/afx/2008/08/24/afx5352890.html


BEIJING (XFN-ASIA) - China is considering a 370 bln yuan package of fiscal expenditures and tax cuts to stimulate the economy, the Economic Observer reported, citing a source close to the matter.
The report said said the plan includes 220 bln yuan in government spending and 150 bln worth of tax cuts.
The plan received initial approval from the Central Leading Group on Economic and Financial Affairs, a body under the State Council, but further details will be finalized by the finance ministry and other government departments.
Last week, JP Morgan said in a note to clients that the Chinese government is considering a stimulus package of 200-400 bln yuan in tax cuts and capital and housing market stabilization measures.
As a result, the benchmark Shanghai Composite Index closed up 178.81 points or 7.63 pct at 2,523.28 on Wednesday.

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