China is rolling out a new stimulus package aimed at boosting consumer spending and providing financial relief to millions of families. Experts speaking to China Media Group (CMG) believe these measures will have a positive impact on the economy.
One of the key actions taken by China's central bank was the reduction of the reserve requirement ratio (RRR) for financial institutions by 0.5 percentage points, bringing the weighted average RRR to approximately 6.6 percent. This move is expected to release around 1 trillion yuan ($142.6 billion) into the market, significantly increasing liquidity ahead of the national holiday, according to Qu Yiping of Eastmoney Securities.
Furthermore, the Political Bureau of the CPC Central Committee has outlined additional economic strategies, including enhanced fiscal and monetary policies, initiatives to stabilize the property market, and efforts to invigorate the capital market. A new private economy promotion law is also in the works, aiming to foster a more robust private sector.
The State Council Information Office recently introduced guidelines for the insurance sector, setting objectives for 2029 and 2035. Luo Yanjun, director of the Life Insurance Department of the National Financial Regulatory Administration, emphasized the focus on strategic emerging industries and advanced manufacturing to support high-quality growth.
In addition to the RRR cut, there are plans to reduce existing mortgage interest rates and standardize the minimum down payment ratio for mortgages. These measures are anticipated to lower annual interest expenses for households by approximately 150 billion yuan ($21.4 billion), providing a substantial boost to consumer spending and overall economic revival.
Reference(s):
cgtn.com
