Beijing's latest stimulus plan still targeting growth

CHINA'S State Council on Wednesday unveiled a new stimulus package aimed at supporting the country's flagging economy, in a sign that Beijing's focus is still on supporting growth, despite rising concerns over credit growth and local government debt. The package includes tax breaks for small firms, and accelerated shanty town renovations and railway investments in the less-developed areas out west.

Analysts mostly welcomed the announcements, which are in line with previous interventions supporting economic activity. They say that in the short term, the measures will infuse oxygen into the economy without stalling reform, while maintaining growth at a level which satisfies Beijing's need for social stability.

Most of the measures, already in the annual economic work plan announced last month, largely serve to reassure markets and ensure that growth does not fall to below the 7 per cent threshold. First-quarter data to be published on April 16 could shake markets, which are already nervous about the state of the world's second-largest economy.