Economist Zhu Min, the former deputy governor of the People's Bank of China, said that the stimulus plan launched by China will boost the emerging economic field while avoiding the inflow of funds into the real estate industry that is in trouble.
Zhu Min told Bloomberg News that the scale of stimulus plan launched by China is not large, but the impact will be great, because it will focus on climate change issues and other areas that will become China's new "competitiveness".EssenceZhu Min has served as the vice president of the International Monetary Fund (IMF), and is currently the president of the National Financial Research Institute of Tsinghua University.
The Central Finance will issue a 2023 State Bond RMB 1 trillion (S $ 189.4 billion) in the fourth quarter of this year.Disaster reduction and relief shortcomings, overall improvement of China's ability to resist natural disasters.
Zhu Min believes that stimulating measures will promote the growth of industries favored by governments such as advanced manufacturing and renewable energy, while ensuring that the debt level will not rise significantly.
Zhu Min describes the plan as "the industry is targeted, special and structured", which aims to benefit the government's hopes to replace traditional economic growth industries such as real estate and infrastructure construction.
He also predicts that after the Chinese economy stabilizes in the third quarter, it will increase by 5%this year.
