China Launches Stimulus Package To Revive Economy

China’s central bank has unveiled a comprehensive package of monetary stimulus measures aimed at revitalizing the world's second-largest economy, as concerns grow within Xi Jinping’s government over slowing economic growth and declining investor confidence, Bloomberg News reported.

These steps, announced alongside two of China’s other top financial regulators at a rare briefing in Beijing, marked the first time both measures were cut on the same day since at least 2015.

People’s Bank of China Governor Pan Gongsheng introduced key actions, including a reduction in a short-term interest rate and plans to lower the reserve requirement ratio (RRR) for banks to its lowest level since at least 2018.

These steps, announced alongside two of China’s other top financial regulators at a rare briefing in Beijing, marked the first time both measures were cut on the same day since at least 2015.

The central bank’s moves spurred gains in China’s struggling equity market, accompanied by additional announcements designed to boost confidence.

In particular, a package aimed at supporting the country’s troubled property sector was revealed, which includes lowering borrowing costs on as much as $5.3 trillion in mortgages and relaxing rules for second-home purchases.

Additionally, Pan stated that the central bank would inject at least 800 billion yuan ($113 billion) in liquidity to support the stock market, with officials exploring the creation of a market stabilization fund.