Thế Giới

China announced a policy package of 33 economic recovery measures after COVID-19

China announced a policy package of 33 economic recovery measures after COVID-19 - Photo 1.

Workers remove a fence at a residential area on May 31, as Shanghai city prepares to end the blockade because of the COVID-19 epidemic – Photo: REUTERS

Observers say that the latest economic stimulus package shows that China has shifted its focus to its growth target, as a result of strict COVID-19 control measures.

According to Reuters news agency, to revive investment and consumption, China focuses on developing companies that provide technology platforms, which are said to help stabilize the source of jobs.

The Chinese side said that the above companies are also encouraged to make breakthroughs in the fields of cloud computing, artificial intelligence and blockchain technology.

China will also expand private investment, accelerate infrastructure construction, and stimulate purchases of cars and home appliances to stabilize investment.

In terms of monetary and fiscal policy, China will enhance financial efficiency through capital markets, by supporting domestic companies listed in Hong Kong and abroad.

China also pledged to further reduce real borrowing costs and strengthen financial support for infrastructure and large projects.

To strengthen financial resources for the economy, China will accelerate the issuance of special bonds by local governments and provide cash support to companies that hire university graduates.

The government will provide tax credits to more sectors, while allowing businesses in industries hit hard by COVID-19 to defer social security payments.

Other measures include policies to ensure energy and food security, and stabilize supply chains.

Businesses are afraid to borrow capital

The Chinese authorities are facing a big challenge in convincing businesses and households to increase loans to boost production, business and consumption.

Last week, the People’s Bank of China (PBOC) asked lenders to “do all they can” to increase loans. The PBOC also pushed banks to lower mortgage rates and urged them to stabilize lending in the real estate sector.

However, Bloomberg News reported that home sales in China continued to decline in May, showing that the credit demand of real estate companies is at a low level.

During the epidemic period, Chinese enterprises had to suspend production and cut jobs, causing revenue to drop and profits to plunge.

“Sluggish credit demand suggests deteriorating market expectations and slowing business expansion,” strategy allowances high Xing Zhaopeng of ANZ China said.

According to data compiled by Bloomberg, over the past seven months, the number of corporate bonds in China will be lower than the number of bonds due to mature in May for the first time in the past seven months, by a difference of 102 billion yuan (CNY). equivalent to 15.3 billion USD).

That means businesses are repaying more debt than borrowing.

You are reading the article China announced a policy package of 33 economic recovery measures after COVID-19
at – Source: – Read the original article here

Back to top button