Home > News > Current News > Regulators light new spark in markets
Browse Categories
Industry News
Current News
Company News
printed beach towel
Something About Towels
microfiber cleaning towel
Certifications
Contact Us
Shenzhen City Dingrun Light Textile Import And Export Corp. Ltd.
Tel:(+86 0755)83658792, (+86 0755)83658793, (+86 0755)83658794
Fax:(+86 0755) 83639641
Email:admin@szdingrun.com Contact Now

Regulators light new spark in markets

Regulators light new spark in markets

Leon Li 2022-10-27 10:03:59

Fresh measures for real economy seen lifting expectations of development

Chinese authorities' renewed commitment to stabilize the real economy and financial markets is timely and has helped bolster expectations of China's economic development amid elevated uncertainties at home and abroad, experts said on Wednesday.

Their comments followed the unveiling of a number of new measures by authorities, with some reiterating their policy orientation, to stabilize the housing, stock and currency markets while beefing up support for the struggling sectors of the real economy.

The State Council, China's Cabinet, unveiled a circular on Wednesday that outlined a series of measures to improve the business environment and vitalize market players, including further leveraging the loan prime rate mechanism to reduce financing costs of companies and individuals, and continuing the purchase tax exemption for new energy vehicles.

Efforts will be made to ensure steady, healthy development of the real estate market, the circular said. Local governments will have more discretion in using the more than 40 tools in reserve and flexibly use transitory credit policies to support basic homebuying and upgrade demand for housing.

The circular urged local governments to facilitate the delivery of sold property projects, make good use of relevant special loans and fend off any possible associated risks.

This followed the People's Bank of China, the country's central bank, and the State Administration of Foreign Exchange jointly vowing in a statement on Tuesday that they will strengthen coordination with other agencies to maintain healthy development of the equity, bond and real estate markets.

Also on Tuesday, the China Banking and Insurance Regulatory Commission said in a separate statement that neither the prospect of long-term strengthening of the renminbi nor the basis for the country's capital market to perform steadily will change as China's economy remains resilient.

Markets rebounded on Wednesday amid regulators' announcements, as the benchmark Shanghai Composite Index rose by 0.78 percent to close at 2999.5 points, while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, climbed 2.52 percent to close at 2372.88 points.

Zhou Maohua, a macroeconomic analyst at China Everbright Bank, said successive statements from the government have delivered a clear signal that the authorities are keen on stabilizing market expectations and continuing policy efforts to sustain economic recovery.

"This has undoubtedly reassured the market about China's economic prospects," Zhou said, adding that such positive policy signals are much in need as global financial volatility remains elevated while domestically some sectors of the real economy are still under pressure despite the overall recovery.

The PBOC and SAFE have vowed in their joint statement to first study and then roll out new supportive measures for those affected by COVID-19 while ensuring the effectiveness of existing supportive steps and maintaining reasonable monetary and credit growth.

Efforts will also be made to keep the exchange rate of the renminbi "generally stable at a reasonable and equilibrium level", the statement said, hours after the said financial regulators increased a key parameter to boost domestic borrowing from overseas and thus help prop up the Chinese currency.

Ye Yindan, a researcher at the Bank of China Research Institute, said the PBOC's announcement indicated that monetary policy may strengthen support for the real economy in the coming months.

The Ministry of Finance also pledged on Tuesday to improve fiscal and tax policies relating to employment, education, eldercare, healthcare, social insurance and housing in a gradual manner to promote high-quality development and common prosperity.

The China Securities Regulatory Commission said in a statement on Tuesday that it will deepen reforms comprehensively to boost direct financing, expand high-standard capital market opening-up at an institutional level and enlarge overseas channels of listing and financing.

The above news was excerpted from china daily by China towel supplier Shenzhen City Dingrun Light Textile Import and Export Corp.Ltd, a company specialized in producing baby diapers, baby bibs, beach towel, blankets, bath towels, tea towels, compressed towels, microfiber towels etc.