China Implements Coordinated Macroeconomic Policies to Ensure Growth Stability

Throughout this year, macroeconomic policies in finance, taxation, and other sectors have closely cooperated and worked in the same direction to strengthen the positive momentum of China’s economic recovery.

The proactive fiscal policy has been consistently reinforced to support the positive development of the economy. As of the end of August, the central budget’s internal investment has been essentially allocated, and the issuance and use of special bonds have accelerated, driving the expansion of effective investment. The central government has disbursed 9.55 trillion yuan in transfer payments to localities, providing robust financial support to ensure the stable operation of local finances.

Simultaneously, monetary policy has become more precise and robust. The People’s Bank of China has lowered the reserve requirement ratio twice this year, releasing over 1 trillion yuan of medium- to long-term liquidity. Two interest rate cuts have significantly lowered the financing costs for the real economy, contributing to reasonable growth in monetary credit. In the first eight months, RMB loans increased by 17.44 trillion yuan, providing stable and robust financial support for economic growth.

Alongside the overall increase in loan volume, the structural optimization continues. Data indicates that China’s inclusive small and micro-business loans and loans to technology-oriented small and medium-sized enterprises have seen year-on-year growth rates exceeding 20% for four consecutive years and 25% for three consecutive years, highlighting the continuous strengthening of financial support for key areas and weak links.

Currently, the effects of a series of policy “combinations” are gradually emerging, with major economic indicators showing improvement in August. The manufacturing purchasing managers’ index continues to rise, the growth rate of total retail sales of consumer goods accelerates, and the growth rates of value-added in large-scale industries and the production index of the service industry both increase. High-end manufacturing and high-tech service industries maintain rapid growth, while green transformation and the digital economy inject new impetus and vitality into industrial upgrades.