Given China’s macroeconomic environment in December 2022, the following policies should be taken to boost China’s economic growth and deal with potential risks, said ZHANG Bin, CF40 Nonresident Senior Fellow: 1/5
1. Lower interest rate by 25 bps each time until the employment and growth targets are hit.
2. Issue new types of fiscally subsidized bonds and policy loans to support investment in public goods and quasi-public goods infrastructure projects that feature limited returns.2/4
2. Issue new types of fiscally subsidized bonds and policy loans to support investment in public goods and quasi-public goods infrastructure projects that feature limited returns.2/4
3. Set up special funds to help market entities battered during the pandemic get back on their feet; increase the amount of living allowance for low-income groups. 3/5
3. Set up special funds to help market entities battered during the pandemic get back on their feet; increase the amount of living allowance for low-income groups. 3/5
4. Stabilize normal financing for #realestate companies;introduce market-based competition on mortgage rates to reduce households’ debt burdens. To resolve the developers’ debt burdens, conduct pilot projects to convert some developers’ housing stock into subsidized housing.4/5
Read China Macro Doctor (CMD): Diagnosis of China’s #Macroeconomy, December 2022 at: cf40.com/en/news_detail… 5/5
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