China’s regional governments have unveiled a slew of new stimulus plans over the past two months worth a total of 7 trillion yuan according to Chinese-language news sources.
According to a report by China Securities News a cursory examination of industrial stimulus plans publicly released by China’s regional governments since July indicates that they are set to invest a total of 7 trillion yuan in local development projects.
A work conference on Guangdong province’s ‘maritime economy integrated test zone’ held on 20 August indicated that the province-level government will invest over 1 trillion yuan in 177 key development projects related to its maritime economy.
The government of Chongqing municipality released its ‘core industry three year stimulus plan’ on the same date, setting out investment of 1.5 trillion yuan in local industrial development during the period of the 12th Five Year Plan.
Other province-level governments which have unveiled large-scale industry stimulus plans over the past two months include Guizhou, with a 3 trillion yuan ecological tourism investment plan, Jiangsu province, which unveiled plans to increase consumer consumption at the end of July, Hunan province, which has plans for 829 billion yuan in investment projects, and Shanxi province, which executed over a trillion yuan in contracts at a recent energy industry expo.
China’s economy has shown increasing signs of a slowdown since the start of 2012, with PMI data released by HSBC this week further heightening concerns of its waning performance.