China's Cabinet unveils 33 measures to revive economy

BEIJING • China's Cabinet unveiled a package of 33 measures covering fiscal, financial, investment and industrial policies yesterday to revive a pandemic-ravaged economy, saying it will inspect how provincial governments implement them.

The stimulus package, which was flagged by China's State Council in a routine meeting last week, underscores Beijing's shift towards growth, after draconian Covid-19 control measures pounded the economy and threatened Beijing's 5.5 per cent growth target for the year.

To revive investment and consumption, China will promote healthy development of platform companies, which are expected to play a role in stabilising jobs, according to the measures.

These companies are also encouraged to make breakthroughs in areas like cloud computing, artificial intelligence and blockchain technologies, the State Council said - the latest sign that China is easing a crackdown on the sector.

The country will also expand private investment, accelerate infrastructure construction and stimulate purchases of cars and home appliances to stabilise investments, according to the measures.

In terms of monetary and financial policies, it will boost financing efficiency via capital markets by supporting domestic companies to list in Hong Kong, and promote offshore listings by qualified platform companies.

The State Council also vowed to further reduce real borrowing costs, and strengthen financial support for infrastructure and major projects.

To enhance fiscal support for the economy, China will accelerate local government special bond issuance and cash support for companies that hire college graduates.

The authorities will also provide tax credit rebates to more sectors and allow companies in industries hit hard by Covid-19 curbs to defer social security payments, the State Council said.

Other measures include policies to ensure energy and food security and stabilise supply chains.

REUTERS