China's stimulus plan raises concerns

Is China's over four trillion yuan's (US$586 billion) stimulus plan going to boost its domestic economy, or cause massive wastes? Maybe the latter, warned Zhou Xiaochua, chief of China's central bank. He pointed out that some projects are too wasteful,which may "endanger investors' ability to pay back loans," he said yesterday at a forum at Beijing-based Chinese Academy of Social Science, which holds a group of advisors to the central government, reported Shanghai Daily. He suggested local governments should be allowed to issue bonds in order to replace their risky practices, such as fund-raising platforms, which is hard to control and could cause problems in the future. The Chinese law... [read full story]                    

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