China announces targeted economic stimulus to support growth

China has announced a targeted package of economic stimulus measures aimed at stabilizing growth and supporting the real estate market. The State Council, led by Premier Li Qiang, pledged to implement “a package of additional practical and effective policies” to meet the government's annual economic development and social targets.

Key measures include mortgage support for eligible homebuyers and an expansion of the People's Bank of China's lending support program. The central bank has increased allocations for re-lending to fund infrastructure, technological innovation, small businesses, and the agricultural sector. Additionally, the one-year interest rate for the certain lending facility was reduced by 25 basis points to 1.5%.

These actions follow a period of slowing economic momentum, with growth falling to 4.3% in the second quarter, below the official annual target of 4.5% to 5%. While the measures aim to stabilize the economy, analysts suggest the targeted nature of the stimulus may not fully address structural issues such as weak domestic demand and heavy reliance on exports.