China’s post-pandemic rebound swiftly faded, prompting the country to implement a plethora of policy initiatives aimed at reviving a flagging economy in recent months.

With the help of the government, the second-biggest economy in the world expanded more quickly in the third quarter than anticipated, increasing Beijing’s chances of meeting its growth objective of about 5% for 2023.

However, analysts note that Beijing’s policymakers continue to face difficulties in maintaining the growth momentum due to a number of factors, including the property crisis, poor confidence in the private sector, a slowdown in global economy, and Sino-US tensions over geopolitics and technology.

A list of recent policy support initiatives is shown below:

Oct. 24 – The upper house of China’s parliament adopted a law allowing local governments to frontload a portion of their 2024 bond quotas as well as a sovereign bond issue worth 1 trillion yuan ($137 billion).

Oct. 23 – As Chinese stocks fell to levels not seen in four and a half years, the country’s official fund, Central Huijin Investment, declared that it had purchased exchange-traded funds (ETFs) and would keep doing so.

Oct. 11 – The “Big Four” state banks in China announced that Central Huijin Investment, the state-owned subsidiary of the banks, had purchased the lenders’ Shanghai-traded shares and intended to grow its holdings over the course of the following six months.

Sept. 22 – The nation’s top market regulator released 22 policies to encourage the growth of the private sector, some of which included removing obstacles to private companies’ access to the market.

Sept. 14 – For the second time this year, China’s central bank said that it will reduce the amount of cash that banks are required to retain as reserves in order to provide liquidity and aid in the nation’s economic recovery.

Sept. 4 – To encourage the growth of the private sector, the National Development and Reform Commission (NDRC) was given approval by the Chinese central government to establish a special bureau.

Sept. 1 – For the first time this year, China’s central bank said that it would reduce the amount of foreign money that financial institutions had to retain as reserves; this move is thought to be intended to moderate the rate of recent yuan depreciation.

Sept. 1 – According to four sources with direct knowledge of the situation, China plans to take additional steps, such as easing limitations on home purchases, in an effort to stabilise its heavily indebted real estate market.

Sept. 1- Leading banks cleared the way for additional loan rate reductions as China intensified efforts to strengthen the flagging economy of the nation.

Aug. 31 – A number of lending regulations have been loosened by China’s central bank and financial regulator in an effort to help homeowners, including the down payment requirement in certain cities and the current mortgage rate for first-time homebuyers.

Aug. 31 – Regardless of credit history, major Chinese cities announced that they will grant preferential loans to individuals buying their first homes.

Aug. 25 – Premier Li Qiang chaired a meeting where the Chinese cabinet agreed rules for affordable home development and building.

Aug. 21- Amidst widespread fears over a fast weakening currency, China surprised markets by holding the five-year rate steady while cutting its benchmark lending rate for one year.

Aug. 15 – Unexpectedly lowering one set of important interest rates, China’s central bank then lowered other rates a few hours later.

Aug. 2 – China’s finance ministry released a set of tax relief measures for rural people and small companies.

July 31 – In an effort to fully realise the “fundamental role” that consumption plays in economic development, the Chinese cabinet announced plans to increase consumption in the real estate, automotive, and service sectors.

July 28 – According to state media, China must take concrete action to cut first-time homebuyer down payment requirements and mortgage rates in order to encourage housing demand. In certain cities, borrowers are still waiting for that to occur.

July 24 – During a Politburo meeting, China’s senior leaders promised to increase economic support, hinting at additional stimulus measures. The official readout’s unusual exclusion of the phrase “housing for living, not for speculation” fueled conjecture about additional steps to stimulate the real estate market.

July 24 – China’s state planner announced plans to boost funding support for private projects and introduced policies to encourage private investment in select infrastructure sectors.

July 21 – To encourage real estate investment, the cabinet adopted guidelines for redeveloping “urban villages,” or impoverished districts within megacities.

July 19 – With a total of 31 policy initiatives, the Communist Party and the cabinet unveiled recommendations to bolster the private sector, promising to make it “bigger, better, and stronger”.

July 18 – A number of initiatives to increase household consumption of goods and services were unveiled by China’s commerce ministry.

July 14 – To assist sustain the economy and address upcoming public health emergencies, China’s cabinet authorised rules for enhancing the construction of public infrastructure in megacities.

June 30 – To assist small businesses and the agricultural industry, China’s central bank raised its lending and rediscount limits by 200 billion yuan.

June 20 – For the first time in ten months, China’s central bank lowered its loan prime rates (LPR), which are important lending benchmarks.

(Adapted from Reuters.com)

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