Chinese authorities announce raft of economic stimulus measures
發佈日期: 2025-05-07 23:50
TVB News
Chinese authorities have announced a raft of economic stimulus measures, including interest rate cuts and a major liquidity injection. This, as Beijing steps up efforts to soften the impact of the ongoing trade war with the United States.
The People's Bank of China will lower the borrowing cost of its seven-day reverse repurchase agreements, its benchmark interest rate, by 10 basis points to 1.40 percent, effective from May 8th. Other interest rates will drop in line with the key rate.
The amount of cash banks must hold as reserves, known as the reserve requirement ratio, will be cut by 50 basis points from May 15th, bringing the average level to 6.2 percent.
People's Bank of China's Governor Pan Gongsheng said the first RRR cut since September last year will release 1 trillion yuan, or 138 billion U.S. dollars, in liquidity.
He said the PBOC will set up low-cost relending facilities for purchases of tech-related bonds and for investments in elderly care and services consumption.
Similar existing tools to support agriculture and small businesses will be enhanced, Pan said.
The PBOC is also trimming mortgage costs for some buyers.
Authorities will help A-share listed companies affected by U.S. tariffs to cope with difficulties.
Beijing will expand a pilot scheme allowing insurance companies to invest in stock markets by an additional 60 billion yuan, or 8.31 billion U.S. dollars.
The announcements come shortly after American and Chinese officials said U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's top economic official He Lifeng in Switzerland this weekend for talks.
The talks are the first opportunity for the two sides to de-escalate tensions sparked by U.S. President Donald Trump's tariffs.
Some analysts say the Chinese economic stimulus measures are "preventive in nature" as Beijing and Washington's trade negotiations may prove lengthy.
