According to CN Wire, China’s State Council announced additional measures to promote consumption potential and sustainable recovery of consumption.

Additional takeaways

“Will guide financial system to support real economy through various measures such as lowering interest rates and reducing fees.”

“Will steadily increase mass consumption such as automobiles. All regions shall not add new automobile purchase restriction measures.”

“Regions that have implemented automobile purchase restrictions will gradually increase the number of automobile increment quotas and relax qualification restrictions for car buyers.”

‘Will make overall use of existing financial funds to support the construction of consumption-related infrastructure. Will include eligible projects in the scope of local government special bonds, so that investment can be better used to boost consumption.”

Market reaction

As of writing, USD/CNY is sitting at yearly highs of 6.5660, up 0.99% on the day.