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Beijing injects $113B into markets with rate cuts, property support

China’s central bank has introduced a comprehensive monetary stimulus package to combat slowing economic growth and restore investor confidence. Governor Pan Gongsheng announced simultaneous cuts to key short-term interest rates and bank reserve requirements, the first of their kind since 2015. The package also includes support for the struggling property sector, such as lowering mortgage costs and easing second-home purchase regulations, along with injecting at least 800 billion RMB ($113 billion) into the equity market. While the measures aim to help achieve a 5% growth target, analysts caution that further strategies are needed to stimulate consumer demand and address ongoing economic challenges. The market responded positively, with the CSI 300 Index rising by 4.3%.

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