China to Spend $40B on Weakest Part of Economy


Impact of China’s stock selloff on central bank policies

The Wall Street Journal’s Jon Hilsenrath on the impact of China’s stock selloff on Chinese central bank and Federal Reserve policy.

China's government plans to spend 250 billion yuan ($40.3 billion) to foster growth in areas of the economy most in need of support, the Chinese cabinet said on Wednesday.

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The State Council said after a weekly meeting that authorities will also accelerate construction of big public services projects, such as the building of roads and water conservancy facilities.

The cabinet did not comment on China's plunging stock market, which has slumped nearly one- third since mid-June, after having more than doubled before the sell-off.

(Reporting by Koh Gui Qing and Winni Zhou; Editing by Richard Borsuk)

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