China Unleashes Stimulus Package to Revive Economy, Markets

Published On Sep 24, 2024, 1:54 AM

The People's Bank of China has announced a significant stimulus package to revitalize its economy amid fears of slowing growth and low investor confidence. The central bank cut key interest rates and lowered reserve requirements for banks, a simultaneous move not seen since 2015. These measures aim to support the property sector and inject liquidity into the equity market, with a planned 800 billion yuan injection to stabilize stocks. While this approach signals an urgency to meet a 5% growth target for the year, analysts caution that more robust consumer demand stimulation is needed to address longer-term economic challenges. The measures have already led to a notable uptick in the Chinese stock market.