China Unveils Major Stimulus Package, Property Market Boosts Stocks

Sep 30, 2024, 12:26 AM

China has unveiled a comprehensive stimulus package aimed at revitalizing its slowing economy, with a particular focus on the property market. The People's Bank of China has cut interest rates on one-year loans and reduced down payments for second homes to 15%. Major cities including Guangzhou, Shanghai, and Shenzhen have eased homebuying restrictions. The measures also include allowing homebuyers to refinance their mortgages and lowering borrowing costs on as much as $5.3 trillion in mortgages. These steps have led to a significant rebound in Chinese stocks, with the CSI 300 Index experiencing its biggest weekly gain in nearly 16 years, and the Shanghai Composite Index rising over 4% to its highest level in more than 13 months. Goldman Sachs noted that China's leadership had reached its 'pain threshold' before implementing these measures.