China Vows to Boost Domestic Demand to Strengthen Recovery: CCTV

(Bloomberg) -- China's State Council says economic and social activities are gradually closing in on a “normal” level as output steadies and manufacturing resumes, according to state-owned broadcaster China Central Television.

Beijing vowed to stabilize its economic fundamentals, and propel a recovery in consumption by expanding domestic demand, CCTV reported, citing a State Council executive meeting on Wednesday.

China will push ahead with major construction projects, improve the utilization of investment projects within the central government's budget and the so-called special bonds issued by Chinese local governments, according to the report.

Chinese local authorities are being allowed to sell special bonds to pay for infrastructure investment. This year, China has issued 1.29 trillion yuan ($182 billion) in special bonds, with another 1 trillion yuan to be sold by the end of May, easily surpassing the 2.15 trillion yuan total last year.

China will also support companies that have stable employment, especially smaller firms, by extending debt repayment deadlines, and through policies that encourages banks to grant more loans, according to the report.

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With assistance from Bloomberg