In terms of financial development, the State Council vowed to maintain a healthy development and make use of monetary policies more flexibly to adjust the money supply. It also promised to optimize credit investment and ensure that it would be used effectively, especially for supporting financing for small and medium-sized enterprises (SMEs). The State Council encouraged the further research of financing alternatives for SMEs, speeding up the launch of the Growth Enterprise Market for start-up companies, enhancing financial supervision and guarding against financial risks.

CONSUMPTION RESURGENCE: China's retailsales have grown a robust 15 percent year on year in the first quarter, indicating a buoyantconsumer market (CHEN YEHUA)

PRICES DOWN: The CPI fell by0.6 percent in the first quarter, indicatingthat consumers are paying less for foodand clothing (LI ZIHENG)

RURAL PROSPERITY: China is offering high subsidies to farmers for purchases of agricultural machinery in a bid to bolster the development of the vast countryside (LI TIECHENG)

INFRASTRUCTURE BOOM:Economists say the governmentinfrastructure spending spree is boostingthe sagging economy (SUN CAN)