Wen pledges more action on economy

PUBLISHED : Sunday, 10 May, 2009, 12:00am
UPDATED : Sunday, 10 May, 2009, 12:00am

Premier Wen Jiabao has pledged that the government will unveil more policies this year to help the nation weather the global financial turmoil.

'What we are doing to respond to the financial crisis is far more than the 4 trillion yuan [stimulus package],' China National Radio quoted Mr Wen as telling businessmen during a visit to Xiamen on Friday. 'We had [new] policies almost every week and I think new policies will keep coming out this year.'

Mr Wen said he was responding to criticism that the 4 trillion yuan (HK$4.5 trillion) stimulus package, unveiled in November, was the only prescription the government could think of to boost the economy.

The business sector has been wondering whether the government would pump more money to stimulate the economy.

Frances Cheung, a fixed-income strategist at Standard Chartered Bank, believed the mainland might not introduce a new round of fiscal spending to boost the economy. 'But measures such as easing restrictions on certain industries could be introduced, or they may introduce some measures to stimulate domestic consumption,' she said.

Mr Wen said last month at the Boao Forum for Asia in Hainan that the mainland's stimulus package had resolved some major problems in the economy and strengthened market confidence.

He said that the government would continue its proactive fiscal policy while the People's Bank of China, the country's central bank, would maintain its 'moderately loose' monetary policy.