Li promises full use of fiscal weapons

The producer price index fell by 5.9 percent in October from a year earlier, equal to the September decline, according to data released on Tuesday by the National Bureau of Statistics. The PPI has decreased for 44 consecutive months.

The consumer price index cooled more than expected, rising by 1.3 percent year-on-year, slower than the 1.6 percent increase in September.

Lu Feng, director of the China Macroeconomic Research Center at Peking University, said that the government should take proactive measures to stabilize economic growth and adjust economic structure.

The monetary policy should be balanced between ensuring currency flow and preventing new bubbles, and the government's debts could be moderately enlarged to enhance investment, he said.

Zhang Junkuo, vice-president of the Development Research Center of the State Council, China's Cabinet, said that economic growth still faces many pressures in the next year.

Investment in the real estate and manufacturing industries will keep falling, following this year's downward trend, he said.

Lu Ting, chief economist at Nanjing-based Huatai Securities, suggested that the government should speed up the implementation of the second-child policy and take steps including the reduction of personal income tax to encourage new births.

The government should also guide the flow of resources to make sure that medium-sized and small cities have access to better public services, he said.

What they told the premier

Zhang Junkuo, vice-president of the Development Research Center of the State Council

The government should enhance investment in infrastructure to boost economic growth. For example, the traffic condition in central and western China remains poor. Lots of houses in the remote rural areas could not survive an earthquake. Projects to reinforce such houses would not only improve people's livelihoods, but also boost the economy, especially in industries including cement, iron and steel, and many other construction materials.

Lu Ting, chief economist at Nanjing-based Huatai Securities

The strengthened anti-corruption measures have led to the idleness of government officials, and as a result, a large amount of fiscal revenue is being accumulated. The current performance evaluation system for government officials and senior managers of State-owned enterprises should be reformed to punish idleness in conducting duties. If the problem of officials' idleness is not resolved and the government relies too much on monetary easing, a new round of asset bubble and stock market bubbles might be triggered soon.

Liang Wengen, chairman of Sany Group

According to the data (collected by Sany Group), the construction of real estate projects has been declining in recent months, and the business of seaport logistics is also bleak. To make it better, the construction of roads has been rising slightly.