* China on track to meet 7.5 pct GDP growth target - NBS
* Signs of growth stabilisation more obvious
* Says local government debt under control
BEIJING, Aug 26 China's economy is showing clear
signs of stabilisation, helped by policy support and some
improvement in global demand, and is on track to meet the
government's 2013 growth target of 7.5 percent, the state
statistics bureau said on Monday.
The issue of local government debt also remained under
control, the National Bureau of Statistics said at a briefing
organised by the foreign ministry that may have been aimed at
allaying global concern about China's slowdown.
"We are confident that the economy is sustaining the
positive momentum in the second half and confident of meeting
the economic growth target," said Sheng Laiyun, the NBS's
"The economy is showing some positive changes. Signs of
growth stabilisation are becoming more obvious," he said.
A private factory survey last week reinforced signs of
stabilising in the economy in the third quarter after the
government took supportive measures, including scrapping taxes
for small firms and accelerating investment in urban
infrastructure and railways.
That followed a raft of July data which saw factory output
grew at its fastest pace since the start of the year, and
surprisingly strong trade data.
China's annual economic growth slowed to 7.5 percent in the
second quarter, down from 7.7 percent in the three months ending
March 31 - the ninth such deceleration in the past 10 quarters.
Beijing has said it is willing tolerate slower growth as it
pushes reforms designed to reduce pollution, social inequity and
an economic growth model which has an over-reliance on
debt-financed construction and exports.
Sheng said it was very difficult for China to maintain a
fast growth rate due to structural adjustments and declining
surplus labour, but rising consumption, increasing urbanisation
and catch-up growth in less developed regions will be long-term
The government has launched a series of targeted measures
recently to support the economy, including scrapping taxes for
small firms, offering more help for ailing exporters and
accelerating investment in urban infrastructure and railways.
But rapidly slowing growth has also been putting pressure on
China's heavily indebted companies and provincial governments,
raising concerns that the country's explosion in credit since
2008 may be on the verge of a meltdown.
Credit in China's economy almost doubled between 2008 and
last year, pushing investment to 46 percent of GDP, much of that
into infrastructure and property.
The China Banking Regulatory Commission has recently begun
working with China's securities regulator to encourage the
securitisation of loans to help lenders sell problematic loans
and is developing a platform to help banks sell such loans to
That follows a move last year to let provincial governments
set up their own debt-purchasing companies.
"The central government is attaching great importance to
developments in the debt issue," Sheng said.