China's Efforts to Stimulate Economic Growth Successful

China's efforts in stimulating economic growth by expanding domestic investment and consuming demands have paid off in 1999, a senior official said today. Director of the National Bureau of Statistics Liu Hong told a press conference this morning that in 1999, investment demand contributed two percentage points to the country's GDP, while domestic consuming demand contributed 5.5 percentage points.

The contribution by overseas demand was minus 0.4 percentage points, he said.

"This proves that the state's policies in driving the economy by expanding domestic investment and consuming demands have been very successful," he said.

The National Bureau of Statistics today also released a communique, which says that China's financial, securities and insurance industries developed smoothly in 1999.

According to the communique, the People's Bank of China in 1999 gave free rein to the role of monetary policies and adopted a series of measures to appropriately increase money supply, and successfully realized the financial control target set at the beginning of the year, giving active support to national economic development.

By the end of the year, the outstanding amount of broad money ( M2) was 11.9898 trillion yuan, up 14.7 percent from the previous year; that of narrow money (M1) was 4.5837 trillion yuan, up 17.7 percent; while that of money in circulation (M0) was 1.3456 trillion yuan, up 20.1 percent. The outstanding amount of all deposits was 10.8779 trillion yuan at the end of the year, up 13.7 percent from the previous year, while that of all loans was 9.3734 trillion yuan, up 12.5 percent.

The securities markets were further standardized and developed. The Shanghai and Shenzhen stock exchanges issued 98 new A shares, rationed 117 A shares, raising a total amount of 87.7 billion yuan. The issuing of B and H shares raised overseas capital of 610 million U.S. dollars.

By the end of the year, the total number of domestically listed companies rose to 976 from 876 at the end of the previous year, with the total market value reaching 2.6471 trillion yuan, up 36 percent from the previous year. In 1999 a total of 371.5 billion yuan in treasury bonds was issued, an increase of 40.4 billion yuan over the previous year. The insurance industry continued to develop, with a total premium of 139.3 billion yuan, up 10.2 percent from the previous year.

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