China will speed up the pace of around 300 infrastructure projects worth 7 trillion yuan ($1.1 trillion) in 2015 as policy makers look to boost growth that is in danger of falling below 7 percent, Bloomberg reported late on Monday night.
Chinese Premier Li Keqiang’s government has reportedly approved these projects as part of a broader 400-venture, 10 trillion yuan plan that runs through 2016, Bloomberg reported, citing sources familiar with the matter whom asked not to be identified because the decision hasn’t yet been made.
The move by the Chinese government illustrates concern among officials that nation’s planned shift to a domestic-consumption driven economy has yet to produce enough growth momentum, Bloomberg reports.
“It’s part of China’s efforts to stabilize growth, and the news will help to boost market confidence,” said Julia Wang, an economist at HSBC told Bloomberg. “Infrastructure investment will continue to be a major driver for China’s economic growth.”
The approvals contrast with previous moves to boost growth through infrastructure – in which the government authorized projects individually – and are part of efforts to respond to weak output, sources familiar with the matter told Bloomberg.
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