Vehicles drive through Beijing’s central business district, China, April 23, 2018. REUTERS/Jason Lee/File Photo Acquire License Rights
BEIJING, Sept 1 (Reuters) – China has taken a raft of policy measures to revive a struggling economy in recent months after the rapid post-pandemic recovery faded, and further steps are expected.
The world’s second-largest economy posted a solid rebound in the first quarter after COVID restrictions were lifted, but domestic and international demand has since weakened and a deepening housing crisis has put more pressure on growth.
However, few analysts anticipate aggressive stimulus measures amid concerns about debt and financial risks. China has set a modest economic growth target of around 5% for this year.
Below is a list of current policy support measures.
September 1 – China is expected to take further measures, including easing restrictions on home buying, to stabilize its debt-ridden real estate sector, four people familiar with the matter said.
September 1 – China stepped up measures to stimulate the country’s ailing economy, and leading banks paved the way for further cuts in lending rates.
Aug. 31 (Reuters) – China’s central bank and financial regulator issued notices to ease some lending rules to help homebuyers, including cutting the existing mortgage rate for first-time homebuyers and down payment rates in some cities.
Aug. 31 – Major Chinese cities announce they will allow people, regardless of their credit rating, to take out concessionary loans to buy a home.
Aug. 25 (Reuters) – China’s cabinet on Friday approved guidelines for affordable housing planning and construction at a meeting chaired by Premier Li Qiang.
August 21 – China lowered its key one-year lending rate but surprised markets by leaving the five-year lending rate unchanged amid widespread concerns about a rapidly weakening currency.
Aug 15 – China’s central bank unexpectedly cut a key interest rate, and cut more interest rates a few hours later.
Aug 2 – China’s finance ministry has unveiled a package of tax breaks for small businesses and rural households.
July 31 – China’s cabinet enacts measures to boost consumption in the auto, real estate and services sectors, aiming to fully demonstrate the “fundamental role” of consumption in economic development.
July 28 – State media quoted the housing minister as saying China must take effective measures to lower mortgage rates and down payment rates for first-time buyers to boost home buying. Borrowers in some cities are still waiting for this.
July 24 – China’s leaders at a Politburo meeting pledged to increase support for the economy and announced more stimulus measures. A rare omission of the word “housing for living, not for speculation” in the official statement raised expectations of further measures to stimulate activity in the real estate market.
July 24 – China’s state planner unveils measures to support private investment in some infrastructure sectors and announces strengthening financing support for private projects.
July 21 – Cabinet adopts policies to transform “urban villages,” or underdeveloped areas, into megacities that will help support real estate investment.
July 19 – The Communist Party and cabinet issue policies to support private sector, promising to make the sector “bigger, better and stronger” with a total of 31 policies.
July 18 – The Chinese Ministry of Commerce announces a series of measures aimed at boosting household consumption of goods and services.
July 14 – China’s cabinet adopts guidelines to improve public infrastructure construction in megacities to support the economy and deal with future public health crises.
June 30 – China’s central bank increases its remission and rediscount rates by 200 billion yuan ($27.86 billion) to support the agricultural sector and small businesses.
June 20 – China’s central bank cut its key credit benchmarks, or loan prime rates (LPR), for the first time in 10 months.
($1 = 7.1791 Chinese Yuan Renminbi)
Reporting by Kevin Yao; Edited by Shri Navaratnam
Our standards: The Thomson Reuters Trust Principles.
Comments are closed.