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China Adds 1 Trillion Yuan More of Stimulus to Rescue Growth

  • State Council outlines 19 policies including policy bank funds
  • Growth likely to be sluggish barring major stimulus: Goldman
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China Plans More Measures to Stabilize Economy
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China stepped up its economic stimulus with a further 1 trillion yuan ($146 billion) of funding largely focused on infrastructure spending, support that likely won’t go far enough to counter the damage from repeated Covid lockdowns and a property market slump.

The State Council, China’s Cabinet, outlined a 19-point policy package on Wednesday, including another 300 billion yuan that state policy banks can invest in infrastructure projects, on top of 300 billion yuan already announced at the end of June. Local governments will be allocated 500 billion yuan of special bonds from previously unused quotas.