Published Date : Sep 10, 2015
China is willing to adopt strong fiscal policies in order to support the growth of construction industry in Beijing. The China government is planning to boost the small construction companies by lowering taxes and encouraging private capital investments in key areas. Global construction market was in chaos for a few weeks due to slow growth of the market. The mainland Chinese market in Shanghai was also affected by slow growth, wiping trillions of share prices. No specific values were specified by the finance ministry for future spending. According to the finance minister of China, by the end of August, almost 96% of the annual budget for construction infrastructure was spent by the central government.
In order to achieve the growth target of seven percent till the end of 2015, the finance ministry of China said that they would improve and implement a practical fiscal policy and tune the infrastructure required for the construction industry. This would help to stabilize the construction industry in China, across all regions. In share trading, on Wednesday, the stock market of Shanghai rushed by 2.29%, which was a growth by 3% from Tuesday. This growth has given the Chinese construction industry a hope to stabilize the industry in coming few months.
The data released on Tuesday proved that China’s imports faced a downfall for the 10th successive month, resulting to further concerns for the domestic construction market. With this, and due to increased number of uncertainties, the economy of the country was under pressure. Market leading players have already taken efforts to boost the growth of the construction industry. Further, the Chinese government is planning to support the growth efforts by lowering the taxes on small construction companies and their projects. By reforming the tax system, the government is willing to further regulate and stabilize the construction industry.