China's People Bank sees no signs of rebound in third quarter of 2012

Beijing, Sept. 23 (ANI): The Chinese economy is showing no signs of rebounding in the third quarter, and domestic investment is unlikely to expand dramatically in the short term, Song Guoqing, an adviser to the People's Bank of China, has said.

He also said he expected the country's economy needs to expand at around 7.5 percent this year.

According to the Wall Street Journal, China's gross domestic product grew 7.6 percent in the second quarter compared with a year earlier, down from the 8.1 percent expansion in the first quarter and marking the slowest pace in more than three years.

China's economic growth has long depended on investment, spending on projects such as infrastructure or added manufacturing capacity, rather than consumption, the report added.

Song said the government recently has stepped up its approval of new infrastructure projects, but warned that tight monetary conditions in the country, with cautious bank lending and fiscal spending, will likely hamper overall investment. (ANI)