New policy steps from the Chinese government to strengthen economic growth and domestic demand
Beijing is preparing new packages including local government bonds and real estate supports to limit the slowdown in economic growth.
The Chinese government is preparing to implement new policy packages including local government bonds, real estate sector supports, and credit facilities in order to limit the loss of momentum in economic growth and strengthen domestic demand.
State Council Meeting Decisions
In an official statement published following Monday's State Council meeting chaired by Premier Li Qiang, it was announced that practical and effective additional policy packages will be implemented to support economic growth.
Local Government Bonds and Credit Facilities
The Chinese administration plans to use unused local government bond quotas remaining from previous years to support economic activity, and increasing the People's Bank of China's relending facilities is on the agenda.
Support for Technology and Small Businesses
In the new policy package, alongside innovation and technology investments, it is planned to support loans directed toward small businesses and the agricultural sector, aiming to keep production and investments vibrant.
Measures for the Real Estate Sector
While the real estate sector, one of the significant problem areas of the Chinese economy, is at the center of the new support package, policymakers are evaluating new measures to ensure stability in the sector.
Growth Targets and Economic Pressure
While the Chinese economy grew by 4.3 percent year-on-year in the second quarter of the year, weakness in consumption and a decline in investments increase the pressure on the growth outlook for the third quarter.