China unveils monetary stimulus to cushion tariff impacts

AWANI

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.

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