China Sets GDP Growth Rate 6.5%, Seeks Continuity

     BEIJING (MNI) - China aims to keep its economy growing at a slower pace of

about 6.5% this year while limiting its inflation at about 3%, the government

said. 

     While seeking continuity and consistency in macro policies, China will keep

its fiscal policy "proactive," with 2.6% targeted debt-to-GDP ratio, a reduction

of 0.4 percentage point from last year, according to a report to the press ahead

of the opening of National People's Congress on Monday. Fiscal deficit is

projected to be CNY2.38 trillion, the same as last year's budge, it said.

     "Prudent monetary policy will be kept neutral and appropriate levels of

tightness," the government said. Total social financing and M2 monetary supply

will grow at the same level as the actual rates last year, according to the

report. 

     The government will "effectively guide the levels of interest rates, reform

and enhance the supervision of cross-border capital flow," according to the

report. "The yuan exchange rate will be generally stable at adaptive and

equilibrium level," it said. 

     Local government bond issuance will total CNY1.35 trillion this year, an

increase of CNY550 billion from budged last year, according to the report. 

     Chin will reduce financial burdens on businesses and individuals by CNY1

trillion this year, including cutting company and citizen taxes by CNY800

billion, according to the report. 

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: beijing@mni-news.com

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