Shanghai launch economic stimulus package
According to the municipal government official, in addition to the 500-billion-yuan plan introduced last Friday, the government will launch a 160-billion-yuan ($23.4 billion) economic stimulus package. The plan was approved by Shanghai Han Zheng on Monday. It will be spent in the coming two years on such areas as transportation, scientific innovation, industrial upgrading, environmental protection and projects regarding the 2010 Shanghai World Expo.
The urban construction and communications bureau announced last week plans to spend 500 billion yuan on a large scale of infrastructure projects, such as the improvement of affordable and low-rent housing, building projects in the suburbs, constructing an international shipping centre and investment in urban transportation facilities.
In addition, a series of measures were announced to expand financing for small and innovative companies. Sun Lijian, a professor of Fudan University said, “The measures, along with the billions of yuan being committed, are in response to the central government’s latest moves to stimulate domestic demand.”
According to Chen Xiao, a professor from Shanghai Jiao Tong University, the 500-billion-yuan investment will speed up the reconstruction projects. He said, other delayed investment projects caused by the shortage of funding may also be activated through the investment package.
He still said the real effects of the stimulus plan would be determined by the criteria for the selection of projects. Under such circumstance, the investment will be put into areas where are in need of money.
Compared with the first half of the previous years, the growth rate of the city fell to 10.3 percent, down 2.7 percentage points. The next two months and the first half of 2009 will be “tough”, the mayor said, to sustain the smooth development and keep the livelihood of the citizens will be the city’s priority and they will take every effective measure to achieve the goal.
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