China is prepared to issue new stimulus measures if necessary, Premier Wen Jiabao said on a press conference. Apart from the RMB 4 trillion stimulus package and additional tax cuts of as much as RMB 600 billion, China has prepared plans to cope with more economic difficulties. Mr. Wen repeated China’s 8 percent GDP growth target for this year, but admitted that “considerable efforts” will be needed to reach this target.
China’s Premier Wen Jiabao expressed his concern about the country’s large investment in U.S. treasuries. In his speech at the end of China’s annual parliament session, Mr. Wen urged the U.S. to “maintain its good credit, to honor its promises and to guarantee the safeties of China’s assets.” China, as the largest holder of U.S. debt with a total investment of $1 trillion, has a strong interest in an American economic recovery.
Premier Wen Jiabao delivered his speech at the end of the Chinese parliament’s annual session. In his speech he addressed a wide range of issues, including China’s FX reserves and concerns about the U.S., China’s currency policy, additional stimulus plans, GDP growth, unemployment, China’s fiscal deficit, North Korea, Taiwan, and Tibet.
JPMorgan Chase & Co. encouraged investors to buy shares of Chinese banks and insurers. According to the U.S. investment bank, China is likely to remain the only area with positive growth for financial companies in the world. Strong growth in bank lending and fixed-asset investment encouraged JPMorgan to include more Chinese financial companies in its Asian financial portfolio.