China announced stimulus measures to help the virus-ravaged economy

On Tuesday, China’s cabinet issued a package of 33 policies spanning fiscal, financial, investment, and industrial policies to help the country’s pandemic-ravaged economy recover, adding that it will monitor how the policies are implemented by province governments.

After COVID-19 control measures pummeled the economy and threatened Beijing’s 5.5 percent growth target for the year, the stimulus package, which was signaled by China’s State Council in a regular meeting last week, illustrates Beijing’s pivot toward growth.

To resurrect investment and consumption, the government directed local governments not to enact new restrictions on automobile purchases, while those that already have restrictions should gradually increase their car ownership quotas.

On Tuesday, the Ministry of Finance announced that the purchase tax for small-engine automobiles will be halved. According to the State Council, China would encourage the healthy growth of platform firms, which are expected to help stabilize jobs.

The State Council also urged platform businesses to create advances in areas including as cloud computing, artificial intelligence, and blockchain technology, the latest hint that China is loosening its grip on e-commerce platforms and digital behemoths.

According to the measures, China would increase private investment, speed infrastructure building, and encourage the purchase of automobiles and household goods in order to stabilize investments.

In terms of monetary and financial policy, China would improve financing efficiency through capital markets by encouraging domestic businesses to list in Hong Kong and encouraging suitable platform companies to list abroad.

The State Council also promised to lower real borrowing rates even further, as well as provide financial support for infrastructure and big projects.

The Shanghai and Shenzhen stock exchanges released guidelines on Tuesday that allow listed real estate investment trusts (REITs) to raise new money to support infrastructure projects, ostensibly in response to the requests.

The State Council also promised to lower real borrowing rates even further, as well as provide financial support for infrastructure and big projects.

The Shanghai and Shenzhen stock markets released guidelines on Tuesday that allow listed real estate investment trusts (REITs) to raise new money to support the acquisition of infrastructure projects, ostensibly in response to the requests. REITs are seen as a way for Beijing to increase finance for infrastructure projects and rental flats.

According to State Council measures, China will increase local government special bond issuance and financial support for enterprises that recruit college graduates to provide fiscal support to the economy.

According to the State Council, authorities would also grant tax credit rebates to more sectors and allow businesses in COVID-19-affected industries to delay social security payments.

Policies to ensure energy and food security, as well as supply chain stability, are among the other strategies.

Source: Reuters