BEIJING, Nov 5 (Reuters): China will cut red-tape for approving new investment to improve government efficiency and boost capital spending, the cabinet said on Wednesday in its latest measures to support the cooling Chinese economy.
An online system for approving investment will be created to streamline government procedures, Premier Li Keqiang was quoted as saying on the government's website after a weekly cabinet meeting.
Another Xinhua report adds: China's economic growth will moderate further in the next two years as domestic demand is weakened by the property downturn, UBS has forecast.
"We forecast China's GDP growth to slow to 6.8 per cent in 2015 and 6.5 per cent in 2016. This slowdown is mainly driven by the ongoing property downturn," Wang Tao, chief China economist with UBS, said in a research note on Tuesday.
The property downturn is expected to drag down domestic demand through softer construction, weaker heavy industry production and investment, smaller local government financing and slower income growth, Wang added.
China's GDP expanded 7.3 per cent from a year ago in the third quarter, compared with 7.5 per cent in the second quarter and 7.4 per cent in the first quarter of this year, official data showed.
The average price of a new home in 100 major Chinese cities in October fell for the sixth-straight month, reaching 10,629 yuan (US$1,738) per square meter, down 0.4 per cent from September, statistics from China Index Academy (CIA) showed.
Given the seriousness of property downturn, Wang forecast that the government will continue to provide policy support in the coming year to mitigate the slowdown.
China to cut red-tape for new investment
FE Team | Published: November 06, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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