China to boost commodity price supervision in push for industrial growth

[BEIJING] China's state planner will take steps to stabilise the commodity market and hasten construction of new infrastructure, it said on Friday (Feb 18), in the effort to promote steady industrial growth.

In a joint notice, the National Development and Reform Commission (NDRC) and other regulators announced 18 measures in a notice involving fiscal, financial, environmental and more policies to prop up the industrial sector in the world's second-largest economy.

The NDRC said the authorities would ensure supply and stabilise prices of primary products and key raw materials, including iron ore and fertiliser.

They also pledged to reinforce futures and spot market supervision of commodities and strengthen price monitoring.

China sought with a raft of measures recently to cool rapid growth in iron ore, a key steelmaking ingredient, to maintain market order and protect downstream users.

The most-traded iron ore futures on Dalian Commodity Exchange posted the biggest weekly decline in nearly 2 years.

The state planner said it will encourage companies to invest in certain domestic iron ore and copper projects and boost use of scrap metal.

Distributed solar power projects in central and eastern regions will also be encouraged, the NDRC said, adding that it would develop large-scale wind power and solar power bases in Gobi desert regions.

The economic planner said it would guide the financial system to transfer profits to the real economy this year, pushing state-owned banks to lend more to manufacturers and back major projects to cut carbon emissions.

The country will also speed up construction of new infrastructure projects, and increase financial support for traditional trading firms, cross-border e-commerce companies and others, authorities said in the notice. REUTERS