China may launch 3rd round of stimulus investment in Q2

Apr. 22, 2009 (China Knowledge) - The Chinese government is likely to launch its third batch of investments under its RMB 4-trillion stimulus package in the second quarter to further promote China's economic growth, the China Securities Journal on Tuesday, quoting an unnamed source.

The source said that third round of investment, expected to be implemented beginning in early May, will be more than the two previous ones, which amounted to RMB 100 billion in the fourth quarter of last year and RMB 130 billion in the first quarter of this year.

The new round of investment will continue to focus on sectors like health and education, housing for low-income population and major infrastructure projects, all of which benefit citizens in their daily life.

China's gross domestic product (GDP), perhaps in response to the central government's stimulus measures, saw a better-than-expected 6.1% year-on-year growth, reaching RMB 6.57 trillion in the first three months of this year, according to an earlier report from China Knowledge.