- Analytics
- News and Tools
- Market News
- China announces additional stimulus worth CNY1 trillion to rescue economy
China announces additional stimulus worth CNY1 trillion to rescue economy
China’s Cabinet, State Council, outlined a 19-point policy package on Wednesday while announcing economic stimulus measures worth CNY1 trillion ($146 billion) to stimulate growth affected by covid lockdowns and property market crisis, per Bloomberg.
Key takeaways
The stimulus measures will include “another 300 billion yuan that state policy banks can invest in infrastructure projects, on top of 300 billion yuan already announced at the end of June. Local governments will be allocated 500 billion yuan of special bonds from the previously unused quota.”
“Vowed to make use of “tools available in the toolbox” to maintain a reasonable policy scale in a timely and decisive manner.”
“The economy won’t be flooded with excessive stimulus and china won’t overdraw on its future policy room.”
“Pledged to approve a batch of infrastructure projects. Local authorities are encouraged to use city-specific credit policies to support reasonable housing demand.”
“Pledged to continue lowering financing costs and introduce measures to support the development of private businesses and platform companies.”
Market reaction
USD/CNY was last seen trading at 6.8474, down 0.16% on the day. The spot retreats from two-year highs of 6.8694 reached a day before.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
