China's targeted macro-control to shore up growth

BEIJING - To vitalize the economy China has been enhancing targeted macro-control for smooth structural adjustment, said a senior official with the Ministry of Finance.

Su Ming, deputy head of the ministry's Research Institute for Fiscal Science, told Guangming Daily that macro-control has become more accurate and innovative this year.

He highlighted that stronger tax breaks and the abolishment of many charges had stimulated the market.

The government placed more emphasis on people's livelihood and increased funding for education, medical care and social security, which surged 15.8 percent, 19.5 percent and 21.7 percent respectively in the Jan-Aug period in 2015, Su said.

New measures were put forward to fuel the real economy such as the 60 billion yuan development fund to nurture small and medium-sized enterprises (SMEs), and the promotion of public-private-partnerships.

The official also stressed that effective macroeconomic policies would shore up growth, saying that proactive fiscal policy and prudent monetary policy would balance expansion and adjustment, while cuts in interest rate and reserve requirement ratio would improve liquidity and financing assurance to help SMEs.

The policies optimized the financial system and lowered costs for enterprises, and more private capital flowed to public welfare, which all supported the real economy.

Su said it was crucial that these policies continue stably, and are fine tuned to cope with the pressure from slowing economy and systematic risk.