China to improve policy measures

Chinese Premier Wen Jiabao has announced that China will improve its policy measures to stimulate consumption for the second half of the year while balancing inflationary pressures.

“Regardless of whether the aim is to solve long-existing systemic and structural problems or to solve urgent and prominent problems in economic operations, such moves should be carried out under the premise of maintaining steady and fast economic growth,” he said.

President Hu Jintao explained that the country should stick to its pro-active fiscal policy and loose monetary policy to ensure rapid economic development and stability.

The Shanghai Composite Index gained 1.1 per cent to 2,562.41, the highest since 24 June 2010. The four-day stretch of increases was the longest since Feb 12.