China has launched a massive effort since August 2024 to revitalize its struggling economy by introducing various stimulus measures. The latest initiative involves issuing 2.3 trillion yuan in special bonds, the largest since the 2008 crisis. The People’s Bank of China has implemented liquidity-boosting measures, including cutting reserve requirements and interest rates.
To support the real estate sector, the central bank has reduced mortgage rates and down payments, aiming to stimulate demand. The government has relaxed home purchase restrictions in key cities and plans to issue sovereign bonds for subsidies and allowances.
Although these measures aim to revive the economy, concerns remain about the property market’s underlying issues. The government also plans to increase local government bond issuances to support infrastructure projects. Economists stress the need for structural reforms to achieve sustainable growth.
As China’s efforts unfold, the global economic community observes closely, aware of the potential impact on the world economy. Success in reversing the economic slowdown will depend on the effectiveness of these measures.