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    Wen Jiabao Signals Economic Stimulus

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    NTDTelevision

    by NTDTelevision

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    Chinese Premier Wen Jiabao has signaled for more economic stimulus, after disappointing indicators for July.

    Wen told state-run media on Wednesday that, there is, “growing room for monetary policy operation.” He had recently come under criticism for being too conservative and not reacting to the severity of the Chinese economic slowdown.

    Wen said adjustments can now be made after July figures on decreasing inflation were released.

    While Asian stocks reacted positively with an upswing of 0.05% in the MSCI Asia Pacific Index, Chinese stocks continued a two week decline with the Shanghai Composite index down 0.3% , closing at 2,112.20 on Wednesday.

    Wen also signaled more tough times ahead. He warned on Wednesday, that “the foundation for economic stabilization is still unstable, and that economic hardships may continue for some time."

    Wen’s bleak outlook comes as the figures for inbound FDI for July dropped by 7.58 billion US dollars, or 8.7%, from June.