In a decisive move to invigorate its economy, the Chinese mainland is stepping up macroeconomic policies to achieve key growth targets for the year. On Thursday, the Political Bureau of the Communist Party of China (CPC) Central Committee convened an unusual meeting, signaling a strong commitment to implement stronger measures aimed at stabilizing and boosting economic growth.
The measures announced include substantial interest rate cuts and efforts to stabilize the property market. These steps are part of a broader strategy to accelerate economic recovery and ensure the country meets its social and economic development goals.
Earlier this week, financial authorities unveiled a comprehensive policy package that exceeded market expectations. The package includes reducing the reserve requirement ratio for banks, lowering mortgage rates for existing homes, and introducing new monetary programs designed to stimulate the capital market.
On Wednesday, the government introduced guidelines to promote high-quality employment, emphasizing reasonable wage growth and expanded social insurance coverage. These initiatives aim to enhance living standards and support domestic consumption, a key driver of economic growth.
Further bolstering investor confidence, China issued a guideline on Thursday to facilitate the entry of medium- and long-term capital into the market. The goal is to create a more balanced portfolio of capital market investors, foster long-term investment behaviors, and invigorate the capital market.
The timing of the Political Bureau meeting is noteworthy. Traditionally held at the end of April, July, October, and December, this was the first time such a meeting was convened in September. Analysts interpret this earlier-than-usual gathering as a clear indication of the central government’s urgency in addressing current economic challenges and its dedication to implementing policies that ensure stable growth.
These concerted efforts reflect China’s proactive approach to navigating global economic uncertainties and reaffirm its commitment to achieving sustained economic prosperity.
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China steps up macroeconomic policies to achieve growth target
cgtn.com
