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China’s central bank has unveiled a major package of measures aimed at reviving the country’s flagging economy.<\/p>\n
People’s Bank of China (PBOC) Governor Pan Gongsheng announced plans to lower borrowing costs and allow banks to increase their lending.<\/p>\n
The move comes after a series of disappointing data has increased expectations in recent months that the world’s second largest economy will miss its own 5% growth target this year.<\/p>\n
Stock markets in Asia jumped after Mr Pan’s announcement.<\/p>\n<\/div>\n
Speaking at a rare news conference alongside officials from two other financial regulators, Mr Pan said the central bank would cut the amount of cash banks have to hold in reserve – known as reserve requirement ratios (RRR).<\/p>\n
The RRR will initially be cut by half a percentage point, in a move expected to free up about 1 trillion yuan ($142bn; \u00a3106bn).<\/p>\n
Mr Pan added that another cut may be made later in the year.<\/p>\n
Further measures aimed to boost China’s crisis-hit property market include cutting interest rates for existing mortgages and lowering minimum down payments on all types of homes to 15%.<\/p>\n
The country’s real estate industry has been struggling<\/a> with a sharp downturn since 2021.<\/p>\n Several developers have collapsed, leaving large numbers of unsold homes and unfinished building projects.<\/p>\n The PBOC’s new economic stimulus measures come just days after the US Federal Reserve lowered interest rates for the first time in more than four years<\/a> with a bigger than usual cut.<\/p>\n In Asia afternoon trading hours, major stock indexes in Shanghai and Hong Kong were more than 3% higher.<\/p>\n<\/div>\n