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The losses rose to 33.95 billion yuan in the first half, up from 24.06 billion yuan reported during the same period last year, according to the statement.

Zhang Liqun, a researcher with the Development Research Center under the State Council, said abundant domestic agricultural production has helped stabilize prices. He called for more attention to be paid to severe ongoing droughts in the United States that are expected to impact China's edible oil and grain prices.

Essential drugs are those that satisfy health care needs and are available to the public at all times in adequate amounts and in appropriate dosage forms. They are also capped at a price the public can afford.

It is widely expected that new cooling measures will be unveiled before September or October, the country's traditional peak season for home sales.

Railroad equipment manufacturers and construction companies will be the major beneficiaries of the approved infrastructure spending, Xu said.