Beijing to fast track projects to spur growth

The mainland is accelerating 300 infrastructure projects valued at 7 trillion yuan (HK$8.8 trillion) this year as policymakers seek to shore up growth that's in danger of slipping below 7 per cent.

Premier Li Keqiang's government approved the projects as part of a broader 400-venture, 10 trillion yuan plan to run from late last year to 2016, people familiar with the matter said. The National Development and Reform Commission, which will oversee the projects, did not respond to a faxed request for comment.

The move illustrates concern among officials that the country's planned shift to an economy driven by domestic consumption has yet to produce enough growth momentum. Deutsche Bank analysts yesterday cut their growth projections for this quarter to 6.8 per cent, reinforcing their call for the central bank to step up monetary stimulus.

"We expect growth to surprise to the downside in [the first quarter] and policies to surprise on the loose side in 2015," economists led by Hong Kong-based Zhang Zhiwei wrote. China would be hit by a "double whammy" of slowing property investment and a sharp decline in land sales by local governments, the analysts wrote.

The approvals contrast with past moves to boost growth via infrastructure in which the government gave the green light to projects individually. They are part of efforts to respond to weak output, according to the sources.

The projects would be funded by the central and local governments, state-owned firms, loans and the private sector, the people said. The investment would be in seven industries, including oil and gas pipelines, health, clean energy, transport and mining. They said the NDRC was also studying projects in other industries in case the government needed to give more support for growth.