Wednesday, December 3, 2008

China announces new finance measures

China has yesterday announced another series of measures to boost its economy..
An injection of 100 billion yuan ($14.6 billion) into three policy banks will free up credit markets.An executive meeting of the State Council, or the Cabinet, presided over by Premier Wen Jiabao, also said steps will be taken to help financial institutions better ward off risks.This is occurring the day before the Chinese meet with Paulson and his delegation to discuss joint measures that can be undertaken. China continues to stimulate the economy and these banking measures will shore up small and medium businesses.

Banks, securities firms and insurers should take coordinated action to play a bigger role in supporting economic growth and contributing to industrial restructuring, it said.
In the face of the global financial crisis,The State Council said it is imperative to implement a "pro-active fiscal policy" and "a moderately easy monetary policy"; and the financial sector should play a bigger role in economic development.

It announced nine measures to stimulate the financial sector.
It urged commercial banks to meet the demand for loans from small and medium-sized enterprises,investors in the countryside and also home and car buyers.Clearly these measures are aimed at boosting the domestic market as well as stimulating infra structure projects.

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