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Private equity "could have role" in stimulus plan

(Xinhua)
Updated: 2008-11-14 14:24

China's vice finance minister Wang Jun said on Friday the government welcomed all types of capital, including private equity, to help sustain economic growth.

Wang made the remarks at a press conference organized by the State Council Information Office.

He said the pro-active fiscal policy was actually an expansionary policy that would require more national debt to be issued. This would definitely affect the national budget for 2009 and even 2010.

But the government would control the scale of the deficits, he added.

He also said the ministry would work with other relevant departments to ensure the money raised was spent effectively.

China announced on Sunday a 4-trillion-yuan ($586 billion) stimulus package amid rising concern about a sharp slowdown in the world's fourth-largest economy.

Gross domestic product grew 9 percent annually in the third quarter, down from 10.1 percent in the second quarter and 10.6 percent in the first quarter.