The Chinese Government’s Plan to Boost the Economy
Economic Downturn
The Chinese government has drawn up a plan to bring its economy back to the fore amid a downturn in a number of sectors.
Strengthening the Stock Exchange
China is going through a very sensitive period amid a slowdown in several sectors of the economy in the country, which prompted Beijing to develop a plan to return its economy to the fore, which included strengthening its stock exchange.
Share Trading Fees and Public Offerings
The Chinese government recently halved share trading fees and is slowing down the pace of public offerings to prevent a liquidity drain and limit the refinancing of some underperforming companies.
Loosening Mortgage Rules
In the real estate sector, China has given local governments the discretion to loosen mortgage rules for first-time homebuyers.
Stimulating Spending and Reducing Lending Costs
These measures are aimed at stimulating spending and reducing the cost of lending, which helps support the economy as a whole.
Cutting Deposit Rates
The Industrial and Commercial Bank of China and the China Construction Bank are also set to cut deposit rates later this week for the third time in a year.
Strict Action Against Government Misconduct
Beijing has taken strict action against government misconduct such as delaying payments to the private sector as well as lending to private companies, especially small companies.
Focus on Technology Sector
In the technology sector, it was promised to further develop the data security sector, as well as to form new laws in cooperation with external companies such as Paypal and Walmart.