CHINA has stepped up its economic stimulus spending with CNY1 trillion (US$146 billion) focused on infrastructure, though it is said it likely won't do enough to undo damage of repeated Covid lockdowns and a property market slump, reports Bloomberg.
The State Council, China's cabinet, outlined a 19-point policy package, including another CNY300 billion that state policy banks can invest in infrastructure projects, on top of CNY300 billion already announced at the end of June. Local governments will be allocated CNY500 billion of special bonds from previously unused quotas.
At a meeting chaired by Premier Li Keqiang, the State Council vowed to make use of 'tools available in the toolbox' to maintain a reasonable policy scale in a timely and decisive manner, according to a readout from state broadcaster CCTV. Economists were downbeat while financial markets were muted.
beijing has been pressing state banks to provide support for developers so they complete apartment buildings that have stalled, leaving many homebuyers in limbo.
But the state banks, according to Reuters, are pushing back, pointing out the obvious, which is that such measures will place a huge burden on their loan books and exacerbate the problem.
SeaNews Turkey
The State Council, China's cabinet, outlined a 19-point policy package, including another CNY300 billion that state policy banks can invest in infrastructure projects, on top of CNY300 billion already announced at the end of June. Local governments will be allocated CNY500 billion of special bonds from previously unused quotas.
At a meeting chaired by Premier Li Keqiang, the State Council vowed to make use of 'tools available in the toolbox' to maintain a reasonable policy scale in a timely and decisive manner, according to a readout from state broadcaster CCTV. Economists were downbeat while financial markets were muted.
beijing has been pressing state banks to provide support for developers so they complete apartment buildings that have stalled, leaving many homebuyers in limbo.
But the state banks, according to Reuters, are pushing back, pointing out the obvious, which is that such measures will place a huge burden on their loan books and exacerbate the problem.
SeaNews Turkey