China rethinks its spending as growth slows

(MENAFN) China seeks rethinking its spending pattern as the world's second largest economy is slowing, Gulf Daily News reported. Policymakers are trying more tools to keep growth from dipping below the key 7.5 percent level, worried job losses could spark social unrest. The Chinese central bank announced it would reduce the amount of funds which some lenders must hold in reserve to pump more money into the economy. "A highly leveraged economy with mounting financial and fiscal risks related to surging shadow bank lending and ballooning local government debt will constrain policy options," a Chinese economist said.