China's stimulus plan taking effect

China's economy is showing signs that a 4 trillion (A$900 billion) stimulus package is gathering momentum. Economists now expect the world's third biggest economy may expand 6.6 per cent in the second quarter after slowing to 6.3 per cent in the three months to March31, the weakest since 1999.
China is trying to reverse an economic slide that has already cost 20 million jobs, raising the risk of social unrest as exports plunge and the property market sags. Spending on roads, railways and housing has increased prices for iron ore, put a floor under industrial output and helped to drive a record $US237billion (A$367 billion) of new loans in January.
"China looks set to be the first major economy to recover from the current global meltdown" said Lu Ting, and economist with Merrill Lynch in Hong Kong.
"China is the only economy in the world to see significant growth in credit to corporate and household sectors after September 2008, when the financial crisis worsened to a near collapse"