China turns to infrastructure to stimulate growth

Beijing is front-loading investments in big infrastructure projects in order to maintain robust economic growth, the Financial Times reported, citing the official China Securities Journal. “Some projects that were to have started in the second half of the year are being shifted to the first half, with the allocation of central government funding being brought forward,” the paper quoted a “related person” as saying. “There is a clear acceleration of the allocation of investment from the government budget this year compared with the last two years,” the China Securities Journal said. The report did not specify which projects might be accelerated, though analysts say water and transport infrastructure projects are most likely. The report followed comments last week by Premier Wen Jiabao, who said that Beijing should give “more priority to maintaining growth” after the release of disappointing economic data for the month of April.