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CCTV cites cabinet meeting -Breaking

by Mike Robinson

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© Reuters. To prevent spread of coronavirus (COVID-19), people wear face masks when they shop in Beijing’s morning market on March 30, 2022. REUTERS/Tingshu Wang

BEIJING (Reuters – China will soon roll out economic policies in order to ease downward pressure, according to state media CCTV.

China already took into account changes in external and domestic environments as it made macro-policy decisions for the year, but the State Council meeting presided over by Premier Li Keqiang stated that China will prepare for more uncertainties and possible disruptions in the economy.

The second largest economy in the world is currently dealing with the most severe resurgence of COVID-19-related cases since 2020. Many cities are seeing more virus-related curbs and mass testing.

Shanghai is China’s financial capital and home to 26,000,000 people. It has been placed under lockdown for the third consecutive day. New COVID-19 cases have increased by one third, despite strict measures to prevent the virus spreading.

China will not introduce measures to dampen market expectations. It will however increase the issuance of other special government bonds.

The government has established a quota of 3.65 trillion yuan for local government special bonds issuance in the year 2020 ($574.73 Billion). An additional 1.46 billion yuan was already issued to meet this quota.

Special government bonds will only be issued to those regions that have strong debt repayment capabilities and are involved in large projects. This was stated at the cabinet meeting. Foreign capital will be encouraged to buy government bonds.

($1 = 6.3508 renminbi)

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