Factbox-China’s measures to support the economy amid faltering recovery
2023.08.02 04:35
© Reuters. FILE PHOTO: Men work at the construction site of an apartment building in Beijing, China, July 29, 2023. REUTERS/Thomas Peter/File Photo
BEIJING (Reuters) – China has rolled out a series of policy measures in recent weeks to support the economy as its post-pandemic recovery falters, and more steps are expected.
The world’s second-largest economy staged a solid rebound in the first quarter after COVID curbs were removed, but the recovery has faded as demand at home and abroad weakens.
Still, few analysts expect any aggressive stimulus measures due to concerns about debt and financial risks. China has set a modest economic growth target of around 5% for this year.
The following is a list of recent policy support measures;
Aug. 2 – China’s finance ministry unveiled a package of tax relief measures for small businesses and rural households.
July 31 – China’s cabinet issued measures to boost consumption in the automobile, real estate and services sector, aiming to give full play to the “fundamental role” of consumption in economic development.
July 28 – State media quoted the housing minister as saying that China needs to effectively take steps to lower home mortgage rates and down payment ratios for first-time buyers to help spur home purchases. Borrowers in some cities are still waiting for that to happen.
July 24- China’s top leaders, at a Politburo meeting, pledged to step up support for the economy, signaling more stimulus steps. A rare omission of “housing for living, not for speculation” in the official readout fanned expectations of more measures to boost activity in the property market.
July 24 – China’s state planner unveiled measures to support private investment in some infrastructure sectors and said it will strengthen financing support for private projects.
July 21 – The cabinet approved guidelines on transforming “urban villages”, or underdeveloped areas, in megacities, which will help underpin property investment.
July 19 – The Communist Party and the cabinet issued guidelines to support the private economy, pledging to make the sector “bigger, better and stronger” with a total of 31 policy measures.
July 18 – China’s commerce ministry announced a series of measures aimed at boosting household consumption of goods and services.
July 14 – China’s cabinet approved guidelines for improving the building of public infrastructure in megacities, to help support the economy and cope with future public health crises.
June 30- China’s central bank increased its relending and rediscount quotas by 200 billion yuan ($27.86 billion) to support the farm sector and small firms.
June 20- China’s central bank cut its key lending benchmarks, or loan prime rates (LPR), for the first time in 10 months.
($1 = 7.1791 renminbi)
