Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

COVID-hit Shanghai unveils $257 billion in projects in infrastructure push

Economy Sep 20, 2022 06:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. People stand on a bridge near the Bund, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, September 6, 2022. REUTERS/Aly Song
 
USD/CNY
-0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MCO
-0.66%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

BEIJING (Reuters) -China's commercial hub of Shanghai on Tuesday announced eight infrastructure projects with total investment of 1.8 trillion yuan ($257 billion), after the city was hit hard by COVID-19 lockdowns in April and May.

The economy of China's biggest city slumped 13.7% in the second quarter, the worst performance among all 31 of China's province-level regions.

In the first eight months of the year, Shanghai's infrastructure investment fell 27.4% versus an 8.3% gain nationwide, data from local statistics bureaus showed on Monday.

Shanghai's infrastructure push echoed national policymakers' calls to revive sluggish economic growth, which has been hurt not just by COVID outbreaks and lockdowns, but by a protracted property downturn, sluggish domestic consumption, and a fading trade outlook.

To spur growth, authorities have also dusted off an old playbook, issuing debt to fund big public works projects.

The eight projects include a transport hub in eastern Shanghai's Pudong area, urban railways and housing improvement, as well as offshore wind power demonstration projects and a nature park, according to the Shanghai municipal government's Tuesday announcement.

Recent months have seen a pick-up in infrastructure investment in Shangahi, the municipal government said, with contracts signed for 597 big projects from mid-June to mid-September, and investment of 941 billion yuan, while 296 of those have begun construction.

Policymakers have announced more than 50 economy-supporting measures since late May and stressed that this quarter was a critical time for policy action.

The cabinet told local governments to complete selling more than 500 billion yuan in special bonds by the end of October under carryover quotas from 2019.

Such bonds, on top of the annual quota of 3.65 trillion yuan, will help to fund infrastructure projects.

"China's infrastructure investment will in the coming years bolster its slowing economy," Moody's (NYSE:MCO) analysts wrote in a recent note.

($1=7.0086 Chinese yuan renminbi)

COVID-hit Shanghai unveils $257 billion in projects in infrastructure push
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email