This announcement comes after a series of measures approved by the Chinese authorities in recent weeks, at the forefront of which is reducing interest rates and securing liquidity for banks.
In 2023, China witnessed one of its lowest growth rates in three decades, amounting to 5.2 percent, according to official figures that were met with skepticism from some economic experts in light of the difficulties facing economic activity in the country.
Although this percentage is desired by many Western countries, for China it remains much lower than the tremendous growth recorded in the past decades, which made it China The second largest economy in the world.
Finance Minister Lan Fuan announced Saturday during a press conference that Beijing is “in the process of accelerating the use of additional treasury bonds.”
He stressed that “over the next three months, a total of 2.3 trillion yuan ($324.88 billion) of private bonds will be able to be used.”
He also reported that Beijing It intends to “issue special government bonds to support large state-owned commercial banks,” without specifying any amount.
The minister indicated that these funds will help banks “renew their capital base, improve their risk resistance and lending capabilities, and better serve the development of the economy.”
Revitalizing the real estate sector
And it will be raised Beijing Also a debt ceiling for local authorities to allow them to spend more on infrastructure and boost employment.
Deputy Finance Minister Liao Min explained that local governments will receive special bonds that allow them to purchase unused or vacant land, which may allow the real estate sector to be revitalized.
Beijing will also encourage the purchase of commercial properties to convert them into low-priced housing.
On the other hand, the main Chinese banks will reduce interest rates on most current real estate loans as of October 25, in response to a request from the central bank, according to what the official CCTV channel announced on Saturday, explaining that this reduction will be automatic and that borrowers “will not need To submit a request in this regard.
