letter | China’s stimulus measures show lessons from the past

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The stock markets in mainland China and Hong Kong subsequently performed better than others notice the central government’s stimulus measures last month. The measures include the establishment of a refinancing facility to support share buybacks and purchases by listed companies; Reducing the down payment rate for used properties to 15 percent and reducing the mortgage interest rate by around half a percentage point.

Most importantly, in a politburo meet Two days after the announcement, the leadership emphasized stabilizing the real estate market, controlling real estate supply and revitalizing the capital market.

Some have compared these measures to quantitative easing in the US in the wake of the 2008 global financial crisis or easing in Japan to combat deflationary pressures. Others have compared them to those of China Stock market rescue in 2015. However, these different attempts at monetary easing are not comparable because the approaches and results are completely different.