Newspaper source who gave boost to Chinese stocks is 'top leader'

An article on the website of the People's Daily overseas edition on Wednesday hinted that an "authoritative insider" who was quoted by the paper's domestic edition in a story that helped send Chinese stock markets rocketing this week was a top national leader.

The People's Daily on Monday published an article headlined "Five most pressing questions on the Chinese economy - an exclusive interview with an authoritative insider", stressing that investment had an important role in bolstering growth and reviving investment. The article also appeared in its English edition.

On the same day, the National Development and Reform Commission (NDRC) rolled out a 1.97 trillion yuan (HK$2.5 trillion) investment plan by inviting private investors to help fund, build and operate 1,043 public-private partnership projects ranging from highways to tunnels.

In the article, the insider said investment had a vital effect on growth. "Seen from the stage China is at right now, whether it can transfer savings to effective investment will be the key to stable economic growth," he said.

More financing channels should be explored to exploit the potential of private capital and transfer more savings into investment, he was quoted as saying.

The paper, which in recent months has run a string of articles to inform the public about the stock markets and the nation's economic outlook, is seen by investors as an important window on Beijing's thinking on policy.

On Monday, the Shanghai Composite Index posted its biggest single-day rise in four months, led by infrastructure and transport shares. It was up by 3.35 per cent to close at 4,813.80.