Chinese Premier Li Qiang Urges Swift Implementation of Stimulus Measures

Following the recent introduction of a comprehensive stimulus package aimed at accelerating China’s economic recovery,  immediate action from government departments is needed to ensure the swift implementation of these measures.

In a statement made during an executive meeting of the State Council, Premier Li emphasized the urgency of the situation, describing the stimulus measures as a “policy bazooka” designed to fast-track economic recovery. “We must expedite the roll-out and implementation of policies, with those relatively mature launched immediately,” he stated.

Following Tuesday’s People’s Bank of China’s (PBOC) announcement, the index surged by 13.8%. On Monday, the Shanghai Composite Index soared by 8.1%, while the CSI 300 Index jumped 8.5%, driving turnover on the Shanghai and Shenzhen bourses to a record 2.6 trillion yuan (US$370.75 billion).

China’s 10-year treasury bond yield was around 2.2%, with the 30-year treasury bond yield at about 2.4%. The yuan also strengthened, with the PBOC setting the daily fixing rate at 7.0074 yuan per US dollar, surpassing Friday’s rate of 7.0101. The offshore rate hovered around 6.99 as of Monday afternoon, as reported by SCMP.com.

“All departments should not circumvent difficulties or pass the buck, but rather form strong synergy in their work,” Li urged, highlighting the need for coordinated efforts across various sectors1. He also stressed the importance of “effective macroeconomic control” and developing “new incremental policies” to adapt to evolving circumstances.

The premier’s call to action is crucial to achieving the annual GDP growth target of around 5%. This goal has become increasingly challenging due to the current economic landscape.

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