Explainer13 of China’s biggest fiscal manoeuvres to boost economy since the pandemic years

The People’s Bank of China keeps a running tab of big policy moves, and it shows trillions of yuan worth of support measures employed since 2021

Initiatives have generally been sector-specific, with financial authorities intent on taking targeted steps rather than heeding market calls for a full-blown stimulus

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New residential buildings are seen in Shenzhen, Guangdong province. Authorities are taking steps to clear excess housing inventory in the latest move to shore up the nation’s economy. Photo: Bloomberg

Published: 11:00pm, 23 May 2024Updated: 1:12am, 24 May 2024

China’s recent unveiling of a massive relending package to help rescue the distressed property sector marks the latest in a series of targeted schemes to support small businesses, shore up the agriculture sector and amplify poverty-alleviation efforts across the country.

The use of structural support tools in recent years has largely reflected an intention by the People’s Bank of China to hone in on specific obstacles impeding growth of the world’s second-largest economy, rather than embrace across-the-board loosening, despite persistent market calls for more impactful stimulus measures in the wake of the pandemic.

As of the end of last year, the size of the relending tools on offer totalled 7.5 trillion yuan (US$1.03 trillion), or 16.4 per cent of the central bank’s assets, according to its publicised figures.

Here, the Post breaks down where the PBOC has splashed out on relending programmes and support measures in recent years.

May 2024: Relending funds to help turn unsold homes into affordable housing (300 billion yuan)

The scheme represents China’s most ambitious undertaking to rescue the property sector and shore up the broader economy. The relending funds are intended to clear excess housing inventory, coupled with measures that ensure that developers have access to financing and that encourage the repurchase of “idle” land.

April 2024: Relending for tech innovation, equipment renewals and upgrades (500 billion yuan)

The scheme revived two measures – initially introduced in 2022 as temporary tools – in April, amid Beijing’s push to make technological development a cornerstone of economic growth.