Beijing To Enact Measures To Stabilise Economy

Beijing will roll out policies to stabilise the economy in the face of downward pressures, CCTV quoted a cabinet meeting as saying on Wednesday.

CCTV reported that a State Council meeting chaired by Premier Li Keqiang said the central government had already considered both domestic and external factors when devising macro policies for this year but would make preparations for more uncertainties to come.

The world's second-largest economy is grappling with the worst resurgence of Covid-19 cases since early 2020, with more mass testing and virus-related curbs ratcheting up in many cities.

Shanghai, home to 26 million people, is in the third day of a lockdown as new cases in the city jumped by a third despite stringent measures already in place to try to stop the virus from spreading.

Beijing will refrain from introducing measures not conducive to stabilising market expectations, and will step up the issuance of special government bonds, CCTV reported. The government has set this year's quota for local government special bond issuance at 3.65 trillion yuan, and 1.46 trillion yuan has been issued to date in advance quotas.

The first bonds will be issued in regions with strong debt repayment abilities and large numbers of projects, according to remarks at the cabinet meeting. The State Council will also encourage foreign investors to purchase government bonds. (Reuters)