MNI POLICY: China 2019 Growth Likely Above 6.2%: PBOC Offcl

     BEIJING (MNI) - China's economy is expected to pick up slightly in May from

the weaker-than-expected data seen in April, a PBOC advisor told reporters on

the sidelines of the Financial Street Forum conference Thursday.

     "Growth for the whole year is likely to stand above 6.2%," said Liu Shijin,

a member of the PBOC's monetary policy committee. He also said China's exports

have entered a low-level growth period, developments depend on how the

China-U.S. trade talks go, noting negotiation could resume.

     Here are the key points from Liu's speech at the forum:

     - Property investment, infrastructure investment and exports, the three

main drivers of the economic growth in the past, will continue to underpin GDP,

but they will pay a less important role in adding new gains to the economy, Liu

said. China should work on releasing new growth momentum by improving

inefficient sector, such as lowering the cost of energy, logistics,

communication, land and financing.

     - The income and human capital growth of the low-income group, the upgrade

of consumption and industrial structure, the continuous technology and

innovation advancement, as well as the development of a complete green

industrial system involving green manufacturing, green circulating and green

financing, will also help to boost the growth in the future, according to Liu.

     - Liu also emphasized that China should deepen the structural reform of the

financial sector, so as to coordinate with the new growth momentums. Such reform

should focus on developing a number of financial institutions and products that

provide specialized services for private and small enterprises, Liu said.

     - Reform should also focus on making better use of national credit, for

example, the government can consider issuing some low-cost long-term

construction bonds to fund public goods and services, Liu said, noting that this

can also help to resolve local government's implicit debts. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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