China to expand effective demand for stronger economic recovery

Priority will be accorded to job security and price stability.

"The policy-backed and development-oriented financial instruments should help generate physical gains as quickly as possible, and catalyse lending from commercial banks," Premier Li said.

As China's economy is at a crucial stage of stabilisation and recovery, the third quarter this year is crucial, the meeting noted.

It is essential to efficiently coordinate COVID-19 response with economic and social development, and further deliver the policy package for stabilising the economy, official Chinese media reported citing the meeting deliberations.

The measures will help catalyse private investment and should be better harnessed based on market principles.

The meeting also decided to set up a coordination mechanism on effective investment for major projects, with joint administration and parallel review by the competent departments to ensure consistency and efficiency.

The selected projects should deliver both immediate and long-term benefits, help strengthen the fundamental underpinning for economic and social development, fall within the scope of the 14th Five-Year Plan and other plans, generate economic returns and get started as quickly as possible.

The meeting urged expediting the use of special-purpose bonds and guiding commercial banks toward supportive financing. The newly-added credit line of policy banks should be delivered in a timely manner.

Inter-agency working groups will be sent to localities in due time to supervise and facilitate project delivery. Management and audit will be strengthened to ensure project quality and forestall corruption and rent-seeking.

"During project implementation, pro-consumption measures and work relief schemes should be used whenever and wherever possible," Premier Li added.

Fibre2Fashion News Desk (DS)