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Limited Impact on Growth from China Q4 Infrastructure Boost: Times

MNI (Singapore)

China's infrastructure investment may only provide "moderate" support to the economy in the short term, the Securities Times reported citing experts. The newly launched large projects may not translate into a substantial volume of work right away, and the overall size of the new-energy and new-infrastructure projects is relatively small, said the newspaper, one of the officially run securities dailies. Infrastructure could possibly register a noticeable rebound by H1 of 2022, the newspaper said. Q4 growth faces increasing "downward pressure" given the risk of slowing property demand and exports, making the countercyclical infrastructure building more necessary, the newspaper said. While the size of the projects started in Q4 may exceed CNY1 trillion, the impact from large projects usually takes 3-5 years to materialize, it said.

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