Chinese economy transits from overheated to normal

According to the National Information Center's authoritative report to China Securities, the alarm index for economic operation has fallen to the bottom of the yellow light zone in September, which indicates the operation of the Chinese economy has begun transition from overheated to normal. China's macro control policy therefore should remain relatively stable.

The alarm index shows that the operation of the Chinese economy once reached the edge of the red light zone in April but it has eventually declined since May. In September it has fallen to the bottom of the yellow light zone.

The report says long and middle term factors will give rise to economic growth next year, while the factors related to the old system are the root of inflated investment. In short term, a stable financial and monetary policy should be practiced and more efforts should be given to institutional reform. Setting up a long-term mechanism for curbing inflated institutional investment is the key of reform. On the other hand, all obstacles need to be swept to unleash potentials of all economic activities that are beneficial to social progress.

By People's Daily Online