Chinese Market Continues Upward Trend in Latter Half YearChina's domestic market will continue its upward trend in the latter half, based on first six months' good momentum, according to some authoritative analysis.It is predicted that retail sales of consumer goods will hit 9 per cent growth in the second half year, realizing a 9.5 percent growth for the whole year. Turnover of means of production will climb 13 per cent. The Beijing-based Economic Daily pointed out that the smooth world and domestic economy are providing a favorable environment for next half year's growth. The active and expanding fiscal policy during the past three years will also strongly push economic recovery. The Chinese government issued 100 billion yuan (US$12.09 billion) long-term national bonds early this year, which played an important part in enlarging the domestic demand and promoting the steady increase of the national economy. For the second half, Chinese government will also issue another 50 billion (US$6.05 billion) long-term treasury bonds. Meanwhile, the structural adjustment and reform on state-owned enterprises also provided good foundation on enlarging demand. However, the Daily also listed some disadvantageous factors, including weak consumption demand in urban and rural areas, insufficient funds for non-state units, unrelieved deflation pressure and some unfavourable factors harming foreign trade. |
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