China 2005 GDP growth forecast at over 9%
(AP)
Updated: 2005-11-09 01:30

Fixed-asset investment, which largely reflects government spending on infrastructure, totalled 5.71 trillion yuan (704 billion dollars) in the nine months to September.

The broad measure of money supply growth was expected to expand by 17 percent in 2005, higher than its previous target of 15 percent.

At the same time, new bank loans would amount to 2.3-2.5 trillion yuan (280-308 billion dollars) this year, just about on target with its full year forecast of 2.5 trillion yuan.

The report, published one day after Washington and Beijing struck a deal to restrict Chinese textile exports, added that risks included trade protectionism and high oil prices.

"The hike in international oil prices has had a negative impact on China's economy and so it is necessary to speed up the reform of the oil pricing mechanism," it said.

While global economic growth would continue to support the growth of Chinese trade, "a rebound in trade protectionism in some countries will cause some uncertainties in our exports," it said

It also reiterated that it would maintain a stable yuan at reasonable and balanced levels while allowing market forces to help determine the unit's value.

Yuan appreciation pressure showed signs of weakening and indicated that the central bank could widen channels for capital outflows, allowing for domestic companies to invest more overseas.

China revalued the yuan by 2.1 percent against the dollar in July and scrapped its long-standing peg to the US unit, linking the currency to basket a major currencies.