China stimulus plan 'exceeding expectations'

The Chinese government's economic stimulus measures are having a clear effect in the first half of the year, and the situation…

The Chinese government's economic stimulus measures are having a clear effect in the first half of the year, and the situation has exceeded expectations, central banker deputy governor Su Ning said today.

"China's economy has a relatively big potential for sustainable growth. China's economy is expected to sustain rapid growth for some period in the future," Su, deputy governor of the People's Bank of China, told a financial conference in Shanghai.

China's economy has seen signs of bottoming out, helped by the government's 4 trillion yuan stimulus package and loose monetary policies.

Central banker adviser Fan Gang said last week that China's economy is expected to grow 7 per cent to 8 per cent this year and next, starting to recover in 2010.