Source: CCTV.com
03-04-2009 16:51
Special Report: 2009 NPC & CPPCC SessionsSpecial Report: Global Financial Crisis
Stock markets are considered a barometer of the economy. China's stock market has sunk due to the global financial crisis. Investors are watching this year's NPC and CPPCC sessions closely with the expectation that the meetings will produce further stimulus policies to reinvigorate the economy and lift the lackluster capital market.
An Xueyou says he hopes the government adopt policies which can directly spur consumer consumption.
An Xueyou says, "now many people are reluctant to spend. I think the government should take out more money to subsidize ordinary households directly. This will encourage domestic consumption so that the excess inventory of many manufacturers can be absorbed. "
As investors have been hoping, many of the political advisors are submitting suggestions on revitalizing China's economy amid the global downturn. CPPCC members believe positive economic fundamentals are the basis for a strong stock market performance.
However, some delegates say the size of the current stimulus package are far from enough to bolster the economy.
He Qiang, CPPCC member, says, "the 4-trillion-yuan fiscal stimulus is planned to be spent over the next two years. That means 2 trillion yuan a year. The size is too small. Think about it, our GDP has declined by 4 percentage points in just one year. This is unprecedented since 1990. And the impact of the financial crisis continues expanding."
He Qiang also suggests to launch stock index futures (to confirm) at this moment to bolster market sentiment. He said setting up stabilization fund to cushion the market upheavals is
He Qiang says, "as policy of the capital market, stablization fund is completely necessary. But we should also be clear that the function of stablization fund is limited. And it needs an open, transparent market environment."
Zhang Yunling,CPPCC member, says, "that's very controversial because when the market is not regulated, it's not predictable not on sound base, you just simply to rescue the market. That can only encourage speculator to do more. They can buy the share and sell it later, making the market even more unstable."
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Editor:Qin Yongjing
