News Summary: China steps up local stimulus

Published July 27, 2012 5:15pm ET



CITY MOVES: China is stepping up stimulus spending at the local level seeking to counter its economic slowdown.

BIG SPLASH: One inland city, Changsha, announced plans for a whopping $130 billion for dozens of projects.

CONSTRUCTION BOOST: As part of the government’s “mini-stimulus” program, several other cities have disclosed plans to subsidize housing purchases or otherwise act to support the construction spending that remains the lifeblood of China’s economy. Economic growth slowed to a three-year low of 7.6 percent in the second quarter.