Central Steady Growth Policy Intensive

National Bureau of statistics data show that in 1-4 months of this year, fixed asset investment increased by 12% in nominal terms, the lowest since December 2000.

The total retail sales of consumer goods grew by only 10% compared to the same period last year, which was low in February 2006. In addition, in April, China's import and export performance was also not as good as expected. Exports continued to decline and imports fell further.

The three carriages pulling the economy collectively slowed down.

Xu Gao, chief economist of Everbright Securities, said that the total demand in April collapsed again, which brought great pressure to economic growth.

Behind the slowdown in economic growth is the low rate of capital availability.

Xu Gao noted that the growth rate of investment in the same period in April also dropped to 5.1%, still below investment growth.

The growth trend of investment is still downward under the drag of the slow growth of in place capital.

Financial data in April also confirmed the weakness of the effective financing demand of the real economy.

Central bank data showed that the balance of M2 was 128 trillion and 80 billion yuan at the end of 4, an increase of 10.1% over the same period last year, a record low since 1995. The growth rates were 1.5 and 3.1 percentage points lower than those at the end of 3 and the same period last year.

Analysts believe that the growth rate of M2 slowed down, on the one hand, the lack of physical credit demand, and on the other hand, the decline of bank risk preference led to the weakening of credit derivative deposits.

China Merchants Securities released a comment that the short-term economic development still has path dependence on the steady growth of infrastructure, and the main body of the implementation of the steady growth of infrastructure is precisely the local government.

However, because of the debt constraint and clean-up regulation, the credit pmission of "43 - horn number" has been interrupted since the issuance of the "debt service". The issuance and replacement of local debt has been delayed. The investment and financing channels of local governments are always limited.

"No. 43" stipulates that peeling off

The company's government financing function, financing platform company shall not add new government debt.

Affected by this, the bond underwriting business of the securities company was also blocked.

"In fact, it is not scientific to stop all platform debts directly. It is impossible for the whole country to do everything in one size fits all. As long as the local governments with high debt rates restrict the scale of issuing bonds, they can stop the pressure on local liabilities."

In May 19th, the general manager of the fixed income Department of a large listed securities company said to our reporter.

China Merchants Securities fixed income researcher Tu Bo told this reporter: "the original platform debt place has made a lot of, can not stop, otherwise there will be systemic risk, which is what we do not want to see, many.

Their cash generating ability is poor, and they can only borrow new and old.