China announced increase in debt to support low income individuals, property market and to revitalise the State Bank Of China on Friday, October 12, 2024.
As reported by Reuters, China is currently suffering from the property reduction, which is affecting economic growth and resulting in the anxious environment across world.
Meanwhile, China’s economy is also facing pressure of economists and investors, as government’s 5 percent of target is at risk, indicating the long term structural breakdown.
Despite facing financial uncertainty, Mr Zheng Shanjie, the chairman of the National Development And Reform Commission (NDRC) and China’s state planner, mentioned that he was “fully confident” that the goal is met.
As per Bloomberg News, China is considering to add new sovereign bonds worth 1 trillion Yuan to its state bank, which might increase the economy.
Prior to this, the finance minister of China Mr Lan Fo’an announced Beijing will support local government to solve their debts.
He also mentioned that local government have debts for November and December 2024, and they are permitted to repurchase unused land from property dealers.
Statistics of country stated that Chinese stock market goes high very quickly, with prices rising 25 percent in just a few days.
