China's regional growth indicates economy bottoming out
Updated: 2015-10-29 16:03
During an inspection tour to Jilin in July, Chinese President Xi Jinping called for further revitalization of the northeast region. Earlier this month, official with National Development and Reform Commission Yang Yinkai said, the strategy to revitalize the northeast will be part of China's 13th Five-Year Plan, an economic blueprint for the 2016-2020 period.
Bottom out in Q4
Experts attribute the rebound to a set of easing measures launched by the country this year, and are expecting steady growth in the fourth quarter as government policies continue to take effect.
China's central bank has cut the interest rate five times and freed more cash that banks need to hold as reserves to stimulate the economy. Authorities have also reversed previous restrictions for home purchases, including lowering down payments, to support the sagging property market.
China has also sought to provide a backstop for growth by launching more infrastructure projects. It has injected funding for such projects through policy banks.
Niu Bokun, researcher with Hua Chuang Securities company, forecasts China's economic growth at 7 percent in the last quarter. Rising unemployment in September may trigger further monetary easing measures. Meanwhile, a series of infrastructure construction projects approved recently will also help stabilize the economy.
Li Daokui, an economist at Tsinghua University, said the Chinese economy is likely to bottom out and pick up at the end of this year or in the first half of next year with the further recovery of the property market, the reform of state-owned enterprises and the continuous effect of government policies for stabilizing growth.