China Needs Effective Investment to Stabilise Growth: Guan Tao

China should promote investments on major infrastructure projects as well as galvanizing participation by private capital through tax and fee cuts, so to stabilize the economic growth in the next step, given the resurgence of the epidemic will continue to inhibit the recovery of consumption and services, wrote Guan Tao, chief economist of BOC International and a former FX regulatory official in an article run by Yicai.com. The sales of local government special bonds should accelerate in the rest of this year, with the average monthly issuance up to about CNY460 billion if to use up the annual quota, said Guan. This is 1.37 times higher than the average monthly issuance in the first seven months, and the central bank is expected to make timely and precise injections to keep liquidity ample, wrote Guan.