The cabinet was quoted by state media as saying on Wednesday that China will take additional measures to help the economy, including expanding funding Stimulus Check support for construction projects and stepping up support for private businesses and technology enterprises.
Following a regular meeting presided over by Premier Li Keqiang, the cabinet was quoted by state media as saying that China would add 19 additional policies to the ones that were already in place and announced in May, including increasing the cap on policy financing tools by 300 billion yuan ($43.69 billion).
Stimulus Checks Will Get More Funding
According to the cabinet, the nation would make effective use of its special bond allocations of 500 billion yuan and would encourage centrally owned power generation companies to issue 200 billion yuan in bonds.
State media said that the cabinet has dispatched officials to the provinces to monitor the implementation of the policy actions while maintaining that China will avoid excessive stimulus checks.
According to the cabinet, China would lower funding prices and will approve a number of infrastructure projects.
As Beijing ramps up efforts to revitalize an economy hampered by a property crisis and a rise in COVID-19 cases, China decreased its benchmark Stimulus Checks, and lending rates and lowered the mortgage reference on Monday.
According to the cabinet, China would provide 10 billion yuan in agriculture material subsidies in addition to allocating 10 billion yuan in Stimulus Check funding to help rice output during the drought. China’s economy narrowly avoided contracting in the quarter ending in June. The economy recovered in June but then slowed down in July, putting more pressure on officials to increase support.
To recover the COVID-devastated economy, the government unveiled a package of 33 measures in May. These measures covered fiscal, financial, investment, and industrial policy.
To help some important projects reach the minimum capital requirement, the government has given policy banks new loan quotas totaling 800 billion yuan to fund infrastructure projects. Additionally, policy banks are permitted to issue bonds worth 300 billion yuan.
