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HomeEconomyChina to do more to support economy - state media cites cabinet

China to do more to support economy – state media cites cabinet

BEIJING (Reuters) – China will do more to support the economy, including increasing funding for infrastructure projects and increasing support for private companies and technology companies, state media said on Wednesday, citing the Cabinet.

China will add 19 new policies to existing measures announced in May, including policy financing instruments Quota increase of 69 billion RMB ($43. billion dollars), state media quoted Premier Li Keqiang as saying after a regular meeting presided over.

The country will make good use of the 500 carry-over special bond quota, the cabinet said, and will support the central power generation enterprises to issue 800 billion bond.

“At present, the economy continued to recover in June, but the foundation of recovery is not stable.”

The government cabinet added that it will “take timely and decisive measures to ensure​​​ Maintain a reasonable policy scale, make good use of the policy tools in the toolbox, and step up efforts to consolidate the foundation of economic recovery.”

State media said that while reiterating that China will avoid excessive stimulus, the cabinet has Send officials to provinces to check on implementation of policy steps.

China will lower the cost of capital and will approve a batch of infrastructure construction

On Monday, China lowered its benchmark lending rate and slashed its mortgage benchmark, as Beijing has stepped up efforts to revive an economy crippled by the housing crisis and a resurgence of COVID-19 cases.

China will introduce policies to support private enterprises and the platform economy including technology

Allow local governments to use urban credit policies to rationally support rigid housing

China has allocated one billion yuan to support drought-resistant rice production and will issue The Cabinet stated that 1 billion yuan in subsidies for agricultural inputs.

China’s economy narrowly emerged from contraction in the June quarter. Economic activity rebounded in June but slowed in July, increasing pressure on policymakers to ramp up support.

In May, the Cabinet announced a package 33 of fiscal, financial, investment and industrial policy measures to revive the Covid-19 Virus ravaged economy.

The authorities have provided an additional credit line of RMB 1 billion to policy banks to finance infrastructure projects, allowing policy banks Issued 300 RMB 100 million bonds to help some key projects meet the minimum capital requirements.

($1 = 6.8666 RMB)



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