Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Policies

    Stimulus package unveiled to bolster support for growth

    Measures:?Rate cuts may continue in second half

    By ZHOU LANXU and?OUYANG SHIJIA | chinadaily.com.cn | Updated: 2025-05-07 23:24
    Share
    Share - WeChat

    China's new financial stimulus package reflects policymakers' strong resolve to stabilize the domestic economy and financial markets amid ongoing tariff-related pressures, paving the way for greater monetary and fiscal actions to shore up domestic demand and confidence, economists and analysts said.

    The package, unveiled on Wednesday, includes interest rate cuts, liquidity injection and targeted funding for consumption and technological innovation, and is aimed at strengthening credit expansion, anchoring investor expectations and boosting capital market resilience.

    With the measures indicating that policymakers are taking a proactive stance to brace for worst-case scenarios, additional tools are likely to be in the pipeline, including bolder cuts to interest rates, stepped-up fiscal support for consumption and trade-affected businesses, and the potential launch of a formal stock market stabilization fund.

    The People's Bank of China, the country's central bank, announced on Wednesday that it will cut the seven-day reverse repos — a key policy benchmark for interest rates — by 10 basis points to 1.4 percent from 1.5 percent, effective on Thursday.

    Pan Gongsheng, governor of the PBOC, said the reserve requirement ratio, or RRR — the proportion of deposits that banks must keep as reserves — will be reduced by 0.5 percentage point, unleashing liquidity of around 1 trillion yuan ($138.5 billion). The cut will take effect on May 15.

    Speaking at a news conference, Pan announced a raft of targeted monetary support, including lowering the RRR for auto financing and financial leasing companies to zero from 5 percent and reducing interest rates by 25 basis points on housing provident fund mortgages and various structural monetary instruments.

    The central bank will launch two new tools to provide funding for services consumption and eldercare, as well as tech innovation bond investments, Pan added.

    David Chao, global market strategist for the Asia-Pacific region (excluding Japan) at investment management company Invesco, said, "The rate cuts are likely to reduce borrowing costs in the real economy and give credit growth the boost it needs."

    "The combined package of measures — similar to those in September — demonstrates that policymakers remain committed to prioritizing (economic) growth," Chao said.

    With the policies coming before the planned China-US trade talks later this week, Wang Qing, chief macroeconomic analyst at Golden Credit Rating International, said the PBOC is likely to continue with interest rate cuts and RRR reductions in the second half, as negotiations may go through a complex process while inflation remains subdued at home.

    China's A-share market reacted positively to the measures, with the benchmark Shanghai Composite Index rising 0.8 percent to close at 3,342.67 points on Wednesday.

    Pan added that the central bank will provide sufficient funding support to Central Huijin Investment, an arm of China's sovereign wealth fund that functions as a quasi-stock market stabilization fund, in increasing share holdings when necessary.

    Zhang Jun, chief economist at China Galaxy Securities, said it is also necessary for China to launch a formal stock market stabilization fund via legislative procedures, especially amid rising global financial market volatility, to further anchor market expectations.

    Zhang added that as the RRR for some institutions will be cut to zero — breaking through the previously assumed implicit floor of 5 percent — there is now greater room for reducing the RRR of commercial banks, with a 50-basis-point cut likely in the third quarter to coordinate with incremental fiscal stimulus.

    Lu Ting, chief China economist at Nomura, said China needs to take bolder steps — especially on the fiscal front — to clean up debt in the property sector and support consumption by reforming the pension system.

    Li Yunze, head of the National Financial Regulatory Administration, said that China will accelerate the rollout of financing mechanisms aligned with its new development model of real estate.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    亚洲毛片av日韩av无码| 成人毛片无码一区二区三区| 久久精品无码专区免费 | 国产无码一区二区在线| 中文字幕无码成人免费视频| 亚洲午夜AV无码专区在线播放| 无码人妻一区二区三区兔费| 亚洲国产日韩欧美在线a乱码日本中文字幕高清| 2024最新热播日韩无码| 无码人妻精品一区二区三区久久| 中文字幕在线看日本大片| 一本一道av中文字幕无码| 少妇无码太爽了不卡视频在线看| 无码一区二区三区老色鬼| 精品久久久无码人妻中文字幕| 中文字幕日本高清| 亚洲自偷自偷偷色无码中文| 午夜无码视频一区二区三区| 97人妻无码一区二区精品免费| 色综合久久无码五十路人妻| 亚洲国产精品无码中文字| 欧美麻豆久久久久久中文| 痴汉中文字幕视频一区| 亚洲 日韩经典 中文字幕| 亚洲色偷拍区另类无码专区| 无码少妇一区二区浪潮av| 国产亚洲精品无码专区| 99精品人妻无码专区在线视频区| 少妇人妻无码精品视频| 无码精品人妻一区二区三区中| 亚洲av无码国产精品色午夜字幕| 亚洲AV无码码潮喷在线观看 | 熟妇人妻系列aⅴ无码专区友真希| 最近中文字幕电影大全免费版| 天堂中文在线最新版| 日韩欧美群交P片內射中文| 久久中文骚妇内射| 欧美亚洲精品中文字幕乱码免费高清 | 国产丰满乱子伦无码专区| 最好看的电影2019中文字幕 | 中文字幕无码一区二区三区本日|