2024-10-03 20:31:44
China’s Politburo is concerned about accelerating the country’s economy. They propose to combat the slowdown in economic growth by stabilizing the real estate sector and increasing payments for poor and unemployed citizens, Bloomberg reports, Day.Az reports with reference to Lenta.ru.
Chinese authorities have vowed to take action to ensure the real estate market “stops shrinking” as prices for new homes fell at the fastest pace of the year in August. As part of efforts to reduce the oversupply in the market, the Politburo intends to limit the construction of new houses.
In addition, the government promised to strengthen assistance to people having difficulty finding work and low-income groups. These categories of citizens will increase payments and begin to issue one-time cash benefits.
To boost economic growth, officials have been urged to quickly issue and sell ultra-long special sovereign bonds and local special bonds to attract investment. One effective way to stimulate the market would be to allow local governments to buy back unsold homes using funds raised from the sale of special bonds, according to Ding Shuang, chief economist for China and North Asia at Standard Chartered Plc.
The Politburo also called for a decisive reduction in interest rates and reserve requirements for banks, as well as a relaxation of the Central Bank’s measures to regulate the market, but no specific proposals were made for these measures.