China prepares new policy packages to support the economy
China announced it will implement new measures to limit the slowdown and stabilize the real estate market.
The Chinese government announced that it will introduce practical and effective additional policy packages to limit the economic slowdown and stabilize the real estate market.
State Council Meeting
An official statement was published following the State Council meeting held on Monday under the chairmanship of Premier Li Qiang.
The statement noted that practical and effective additional policy packages will be put into effect to support economic growth.
Local Government and Credit Plans
The government plans to actively utilize unused local government bond quotas remaining from previous years.
Additionally, necessary efforts are underway to increase the re-lending facilities of the People's Bank of China.
Sectoral Supports
Innovation-focused projects and technological investments are among the government's priority agenda items.
Supporting financial loans for small-scale enterprises and the agricultural sector is also planned.
Economic Growth and Targets
The Chinese economy recorded a growth rate of 4.3 percent on an annual basis in the second quarter of the year.
It is stated that growth in the third quarter may have fallen below the government's annual target of between 4.5 and 5 percent.
Interest Rate Cut from the Central Bank
The People's Bank of China lowered the lending interest rates of 3 policy banks to provide support to the real economy.
According to the official statement, the Pledged Supplementary Lending facility interest rate was reduced from 1.75 percent to 1.5 percent.