The Chinese government is discussing a possible new stimulus package amounting to between 8 and 10 trillion yuan over two years, according to Standard Charter's Stephen Green.

The economist said in his latest report that Chinese officials were discussing the possible new stimulus program.

Green said market confidence would be lifted if the investment on this scale was officially approved.

Green told China Business News in an email that economic data for the first two months of 2009 were unlikely to show any obvious signs of economic recovery, but that he expects the 4 trillion yuan stimulus package show signs of taking effect in the second quarter. He did not provide any details on the possible new stimulus plan.

For more details, please read the original news in Chinese at:

http://www.china-cbn.com/s/n/000002/20090302/000000108425.shtml

(China.org.cn by Yan Pei March 2, 2009)