• China's Cabinet issues a series of policies to stabilize the economy

Market news

31 May 2022

China's Cabinet issues a series of policies to stabilize the economy

China's Cabinet issues a series of policies to stabilize the economy, Reuters reports, citing the Cabinet documents.  

Key takeaways

To accelerate issuance of local govt special bonds, add new-type of infrastructure and new energy projects to project pool eligible for fundraising.

Step up vat credit rebates, ramp up fiscal spending.

Will guide actual lending rates lower.

Will allow firms to defer social security payments to end of year in industries hard hit by covid curbs.

Will dole out cash subsidies until end of year for firms that hire college graduates.

Will promote healthy development of platform economies.

Will study support policy to lower purchase tax for some low emission vehicles this year.

Will steadily increase consumption of automobiles and home appliances.

Will increase international passenger flights in an orderly way.

Market reaction

AUD/USD is unfazed by these above headlines, as it remains pressured below 0.7200. The pair is currently trading at 0.7178, down 0.22% on the day.

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.