The Asian giant unveiled this week a series of measures aimed at stimulating its economy, the most significant in several years, including interest rate cuts and cheaper home loans.
Many analysts and investors believe that more state support is needed if the world’s second-largest economy is to achieve its 2024 growth target (around 5%).
Beijing is considering injecting up to 1 billion yuan (128 billion euros) into its state banks to boost liquidity in its financial system, according to the business news agency Bloomberg, which did not specify its sources.
Geopolitical tensions
The funding will come primarily from the issuance of new government bonds. Details are not finalized and are subject to change, Bloomberg says.
The Asian giant is suffering an unprecedented crisis in its vast real estate sector, weak confidence among households and businesses is penalizing consumption, while geopolitical tensions with Washington and the European Union threaten its foreign trade.
China will release its third-quarter growth figures in mid-October. It is aiming for GDP growth of around 5% in 2024, a target considered optimistic by many economists given the current difficulties. This rate would be the dream of many developed nations, but for the country it is still far from the dazzling expansion that has propelled it to the top of the world economy in recent decades.
Source: BFM TV
