CRI听力:China's Economy Runs at Reasonable Level: Official

Reporter:
Yu Bin with the State Council says despite the downward pressure, the economy is running reasonably well.

"Based on the targets set during this year's NPC and CPPCC sessions, GDP growth is expected to reach 7% and the inflation control target is at around 3 percent. Based on the data from January and February, I think the economy is running at a reasonable level. "

According to the latest figure, this month's CPI, the main gauge of inflation, grew 1.4 percent year on year.

Since the middle of last year, due to slowed economic growth, demand and prices for staple goods have fallen, leading to increased downward pressure on the economy.

Despite the trend, China's stocks have made dramatic gains this week, with the main market climbing above 4,000 points for the first time since early 2008.

Yu says the performance of the stock market is a response to the structural reforms to the country's economy.

"I think the key reason is that after years of structural reform and upgrades, the quality of China's economy has improved. This is why the stock market has a good performance. Compared with the previous data, China's growth speed has slowed down. But from a global perspective, a 7% growth rate is relatively strong, and it has bolstered the gain in the market."

Regarding the latest policy changes for the property market, Yu says the new rules are not to lift up the property prices but to facilitate a soft landing for the industry.

"As we know, by the end of last year, the urbanization rate was 55%, it is still a long way to go to reach the target of 70%. It means in the next few years till 2030, the urbanization process will be running at a high speed and there will be a huge demand for housing. So China's property market will have a prospects."

Earlier, China's central bank lowered down payments for buyers of second homes from the previous 60 percent to 40 percent.

Years ago, sky-rocketing home prices forced the government to roll out restrictive measures including raising down payments and banning the purchase of a third home in order to cool the market.

For CRI, I'm Yin Xiuqi.