China Unveils $325 Billion Stimulus Package Amid Economic Uncertainty
China has announced a massive $325 billion fiscal support plan to boost its economy over the next three months, marking its biggest aid programme since the global financial crisis. The stimulus includes measures to strengthen banks, stabilize the property market, and stimulate consumer spending.
Finance Minister Lan Fo’an revealed that China is accelerating the issuance of treasury bonds and special funds, with a total of 2.3 trillion yuan available for various purposes. The government plans to issue special bonds to bolster state-owned commercial banks, reduce local government debt ceilings for infrastructure spending, and support job protection.
Additionally, major banks in China will lower interest rates on existing mortgages, following government directives to stimulate economic growth. Despite these efforts, policymakers believe more action is required to lift the economy out of its current slump and drive sustained growth.
With the global economy facing uncertainty, China’s bold stimulus plan aims to revive economic activity and support market stability in the coming months.