China unveils a raft of stimulus measures, including interest rate cuts and a major liquidity injection, to shield its economy from the impacts of US trade war — just ahead of a key meeting in Geneva.
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00:00Now, moving on, China has unveiled a series of stimulus measures aimed at cushioning its economy
00:06from the impact of the ongoing trade war with the United States ahead of their meeting in Geneva.
00:12Now, this includes interest rate cuts and a significant liquidity injection.
00:18The People's Bank of China will lower the interest rate on its seven-day reverse repurchase agreements
00:24by 10 basis points to 1.40 percent, effective May 8, a move that will trigger corresponding reductions in other interest rates.
00:34The amount of cash that banks must hold as reserves will also be cut by 50 basis points from May 15,
00:40bringing the average level to 6.2 percent.
00:44Authorities will also help aid shared listed companies affected by tariffs to cope with difficulties.
00:49Beijing will expand a pilot scheme allowing insurance companies to invest in stock markets by an additional 60 billion yuan.
00:57The Chinese economy is already feeling the pain from the triple-digit levies,
01:02with data showing factory activity contracting in April at the fastest pace in 16 months.
01:08Beijing last month attributed a slump in manufacturing to a sharp shift in the global economy,
01:14after exports surged over 12 percent in March as businesses scrambled to beat Trump's tariffs.
01:21Beijing has maintained its annual growth target at around 5 percent, the same as last year,
01:26a goal many economists view as ambitious amid the current economic headwinds.