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At last, a China stimulus that holds out some promise
The consumer is finally a target of reforms, which may fall short in magnitude but are headed in the right direction.
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Whether the new package – which is more aggressive than expected – will be sufficient to turn the economy around is debatable.
PHOTO: AFP
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As Chinese citizens return after their “Golden Week” holiday, they may begin to feel some let-up in the economic despair they have endured since the pandemic. Starting on Sept 24, China’s government announced a raft of new measures to lift the struggling economy, with more to come in the weeks ahead.
They include interest rate cuts, reductions in banks’ reserve requirements, which will free up funds for lending, an easing of mortgage restrictions and, for the first time, a potential injection of 800 billion yuan (S$148 billion) into the stock market through financial support for institutional investors as well as stock buybacks.
