China’s State Council launched a stimulus package covering fiscal, monetary, investment and industrial policies in an effort to help economic recovery from the Covid-19 pandemic.
The stimulus package, which includes 33 measures, outlines China’s shift towards growth after being impacted by Covid’s zero policy with tight sanctions measures.
As a measure to restore investment and consumption, China will promote the healthy development of platform companies that are expected to play a role in stabilizing jobs.
Platform companies are also encouraged to make advances in areas including cloud computing, artificial intelligence and blockchain technology.
This indirectly indicates new signs that China is easing crackdowns on the sector.
In addition, China will also expand private investment, accelerate infrastructure construction and stimulate the purchase of cars and home appliances to stabilize investment.
In terms of monetary and monetary policy, Beijing will improve financing efficiency through the capital market, by supporting local firms to be listed in Hong Kong as well as promoting offshore listings by qualified platform companies.
The State Council also pledged to further reduce real borrowing costs and strengthen financial support for major infrastructure and projects.
To increase fiscal support to the economy, China will accelerate the issuance of special local government bonds and cash support for firms recruiting college graduates.
Other measures include policies to ensure energy and food security, as well as stabilizing the supply chain.
