China will hit it’s growth targets for 2009 because only 10% of the stimulus has been spent over the past 3 quarters.
The Chinese central government is expected to launch its third batch of stimulus investments in large domestic projects in the second quarter to further boost its economy, according to the China Securities Journal Tuesday, citing an unidentified source.
The central government has so far cashed in a combined 230 billion yuan ($33.82 billion) for its 4-trillion-yuan stimulus package announced last November to bolster the slowing economy, 100 billion yuan in the fourth quarter and 130 billion yuan in the first quarter.
The newspaper said the new money would continue to be poured in projects that could benefit people’s livelihood, such as health and education sectors, big infrastructure projects, and housing for low-income earners. Previous investments were dedicated to similar purposes.
China will find a path to recovery. They do not have the toxic asset problems we face. They are replacing US demand with infrastructure projects to sustain growth and job creation. Yes they will have some dislocation issues but they have a lot of money to make the shift.
The US should not mistake a Chinese recovery for a US recovery.
P.S
China’s plan of spending within her borders is very clever and the correct thing to do. If other countries could do the same they would. I have little doubt that the Chinese economy will continue to rocket along. Who cares if they spend tens of billions in development. They have it in cash and they’re going to spend it. Steel stocks, Korean ones and the Japanese ones, check for HK listed H-shares as well.
More signs of China recovery:
BEIJING, May 12 (Xinhua) — China’s urban fixed-asset investment in the first four months rose 30.5 percent year on year to 3.71 trillion yuan (543.2 billion U.S. dollars), the National Bureau of Statistics announced Tuesday.
BEIJING, April 10 — The consumption confidence of Chinese bankcard holders warmed up in the first quarter of this year and is expected to rebound further in the second quarter, according to statistics revealed yesterday by China UnionPay and Xinhua.
