The Chinese government is firmly resolved to curb over-investment in certain economic sectors and to promote economic and financial reform. We will pay close attention to macroeconomic developments and remain prepared to take the necessary steps to consolidate the gains in macroeconomic management. In 2004, we have taken important steps to reform state-owned commercial banks and capital markets.
The manufacturing sector, which contributes about 15 per cent to GDP, contracted by 7 per cent year-on-year during the second quarter. The monthly manufacturing data and the Kagiso Purchasing Managers’ Index (PMI) indicate that the manufacturing sector will likely record another disappointing performance in the third quarter.