China plans more stimulus to boost consumption: report

SHANGHAI (Reuters) - China is planning a new economic stimulus package targeted at boosting consumption, the China Securities Journal reported on Monday, citing a senior official of the State Information Center, which is affiliated with the country's top planning agency.

The government will also continue to bolster the economy using fiscal policies, the newspaper said, citing Gao Huiqing, head of the Economic Forecast & Development Strategy department of the government think tank.

Recent economic data has shown China's economy fared better than expected during the first quarter, but more evidence is needed to be convinced it has bottomed out, the report said.

Premier Wen Jiabao said over the weekend that China's economy was in a better shape than expected with March industrial output growth exceeding forecasts, but it still faced big challenges.

China has already announced a 4 trillion yuan ($585 billion) stimulus package to combat the economic crisis.

Critics, however, fear that the plans have given a boost to local pet projects, which in the long run could contribute to China's industrial overcapacity and environmental degradation.

(US$1=6.832 Yuan)