China may issue 750 bln yuan in bonds in '09 for projects

China may consider issuing 750 billion yuan ($110 billion) in government bonds next year for spending on infrastructure projects as it pursues fiscal stimulus, a central bank adviser said in remarks published on Wednesday. Fan Gang, a member of the central bank's monetary policy committee, did not indicate how much in total bond issuance was expected next year. So far this year, the government has issued a total of 590 billion yuan of Treasury bonds.

China is facing a sharp slide in economic growth, with fourth-quarter GDP growth likely to be less than 9 percent and growth next year possibly slipping below 8 percent, Fan was quoted as saying by the official China Securities Journal.

By 2010, he added, GDP growth may return to the 8 to 9 percent level.

He estimated that the world economy had already weathered more than half of the financial crisis, but it may face a three- to five- year adjustment period.

With the deteriorating foreign trade environment, he added, China should actively expand its domestic demand.