The government of Chinese President Xi Jinping has reportedly been exerting pressure&nbsp;to boost the country's economy as Beijing is mulling a broad package of stimulus measures, Bloomberg reported citing people familiar with the matter.&nbsp;

Earlier this month, Bloomberg quoted sources to report that after existing policies failed to sustain a rebound in the property market, China aimed at introducing a set of measures to support the ailing sector.&nbsp;

While speaking on the condition of anonymity, the sources told the outlet that the measures are designed to support areas such as real estate and domestic demand. They also mentioned that interest rate reductions, supporting the real estate market, and more key areas are under consideration.&nbsp;

As quoted, one person said that regulators are seeking to lower costs on outstanding residential mortgages and boost re-lending through the nation's policy banks. They want to ensure homes are delivered.&nbsp;

This comes as the news agency Reuters reported that China's central bank cut short-term borrowing costs on Tuesday to help restore confidence. The move signalled possible easing for longer-term rates.&nbsp;

The plan is not final yet, and the State Council may discuss the policies as soon as this Friday. They might make some amends in the policies during the discussion.&nbsp;

According to Larry Hu, who is the head of China economics at Macquarie Group Ltd, the rate cut signals Beijing's stance is turning more supportive.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/world/former-samsung-electronics-executive-accused-of-stealing-secrets-for-china-chip-factory-603612">Former Samsung Electronics executive accused of stealing secrets for China chip factory</a>&nbsp;

As quoted by Bloomberg, Hu said that "policy is the only game changer" in the face of weak consumer and business confidence in the economy.&nbsp;

Hu added, "The rate cut today sent a clear signal that policy would turn more supportive in the coming months, a significant shift from the tapering in stimulus since April."&nbsp;

<h2>China's new loans in May miss forecasts</h2>

Reuters mentioned in its report that China's new bank loans picked up in May from the previous month, amid an economy-friendy policy being accommodated by the central bank. However, the signs of slowing momentum have raised expectations that more stimulus may be needed to sustain the recovery.&nbsp;

Analysts have said that the weaker-than-expected credit data could strengthen the case for policymakers to roll out more support steps, including a cut in the benchmark lending rate this month.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/world/china-searching-waters-where-north-korean-satellite-crashed-south-korea-603520">China searching waters where North Korean satellite crashed: South Korea</a>&nbsp;

Watch:&nbsp;Gravitas: India-China relations hit an all-time low. Here's why&nbsp;

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New bank lending rose to $190.18 billion in May, data from the People's Bank of China (PBOC) showed on Tuesday. The figures are up from April but missed analysts' estimates.&nbsp;

According to the economists polled by Reuters, it was expected that new yuan loans would jump to 1.6 trillion yuan last month, versus 718.8 billion yuan in April and against 1.89 trillion yuan a year earlier.&nbsp;

As quoted by the news agency, Zhiwei Zhang, chief economist at Pinpoint Asset Management, said in a note: "The credit growth is weak, which is not surprising as other economic indicators such as PMI and exports also sent consistent signals."&nbsp;

"This explains why the PBOC cut the reverse repo rate this morning. It is a small step in the right direction. I expect more policy actions to follow in coming weeks," Zhang added.&nbsp;

(With inputs from agencies)&nbsp;

 
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The government of Chinese President Xi Jinping has reportedly been exerting pressure to boost the country's economy as Beijing is mulling a broad package of stimulus measures, Bloomberg reported citing people familiar with the matter.

The government of Chinese President Xi Jinping has reportedly been exerting pressure to boost the country's economy as Beijing is mulling a broad package of stimulus measures, Bloomberg reported citing people familiar with the matter. Earlier this month, Bloomberg quoted sources to report that after existing policies failed to sustain a rebound in the property market, China aimed at introducing a set of measures to support the ailing sector. While speaking on the condition of anonymity, the sources told the outlet that the measures are designed to support areas such as real estate and domestic demand. They also mentioned that interest rate reductions, supporting the real estate market, and more key areas are under consideration. As quoted, one person said that regulators are seeking to lower costs on outstanding residential mortgages and boost re-lending through the nation's policy banks. They want to ensure homes are delivered. This comes as the news agency Reuters reported that China's central bank cut short-term borrowing costs on Tuesday to help restore confidence. The move signalled possible easing for longer-term rates. The plan is not final yet, and the State Council may discuss the policies as soon as this Friday. They might make some amends in the policies during the discussion. According to Larry Hu, who is the head of China economics at Macquarie Group Ltd, the rate cut signals Beijing's stance is turning more supportive. Also read: Former Samsung Electronics executive accused of stealing secrets for China chip factory As quoted by Bloomberg, Hu said that "policy is the only game changer" in the face of weak consumer and business confidence in the economy. Hu added, "The rate cut today sent a clear signal that policy would turn more supportive in the coming months, a significant shift from the tapering in stimulus since April." China's new loans in May miss forecasts Reuters mentioned in its report that China's new bank loans picked up in May from the previous month, amid an economy-friendy policy being accommodated by the central bank. However, the signs of slowing momentum have raised expectations that more stimulus may be needed to sustain the recovery. Analysts have said that the weaker-than-expected credit data could strengthen the case for policymakers to roll out more support steps, including a cut in the benchmark lending rate this month. Also read: China searching waters where North Korean satellite crashed: South Korea Watch: Gravitas: India-China relations hit an all-time low. Here's why × New bank lending rose to $190.18 billion in May, data from the People's Bank of China (PBOC) showed on Tuesday. The figures are up from April but missed analysts' estimates. According to the economists polled by Reuters, it was expected that new yuan loans would jump to 1.6 trillion yuan last month, versus 718.8 billion yuan in April and against 1.89 trillion yuan a year earlier. As quoted by the news agency, Zhiwei Zhang, chief economist at Pinpoint Asset Management, said in a note: "The credit growth is weak, which is not surprising as other economic indicators such as PMI and exports also sent consistent signals." "This explains why the PBOC cut the reverse repo rate this morning. It is a small step in the right direction. I expect more policy actions to follow in coming weeks," Zhang added. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

China mulling broad stimulus to prop ailing real estate sector, boost economy: Report

Japan government has agreed to provide cash payout of about $880 to all children as part of an economic stimulus plan aimed at blunting the impact of the COVID-19 pandemic.

World Business Watch: Japan to provide $880 cash payout to minors as part of stimulus

Japan announced a fresh $708 billion economic stimulus package on Tuesday to speed up the recovery from the country’s deep coronavirus-driven slump.

World Business Watch: Japan announces $708 bn in fresh stimulus

The Centre on Sunday agreed to raise the borrowing limit of states from 3 per cent of gross state domestic product (GSDP) to 5 per cent in 2020-21, to make available an extra of Rs 4.28 lakh crore.

Releasing the fifth and final tranche of the economic stimulus package, Finance Minister Nirmala Sitharaman said the Centre devolved Rs 46,038 crore of taxes in April to states even though actual revenue shows an unprecedented decline from Budget Estimates.

Revenue deficit grants of Rs 12,390 crore were given to states on time in April and May despite the Centre's stressed resources, she said.

Also, the advance release of the State Disaster Relief Fund (SDRF) of Rs 11,092 crore happened in first week of April, she said adding that a release of over Rs 4,113 crore from the health ministry for direct anti-COVID activities was also released.

At the Centre's request, the Reserve Bank of India (RBI) has increased Ways and Means Advance limits of states by 60 per cent. Also, the number of days state can be in continuous overdraft has been increased from 14 days to 21 days and the number of days state can be in overdraft in a quarter has been increased from 32 to 50 days.

State net borrowing ceiling for 2020-21 is Rs 6.41 lakh crore (3 per cent of gross state domestic product).

States have so far borrowed only 14 per cent of the limit authorised. Eighty-six per cent of the authorised borrowing remains unutilised.

Despite this, states have been asking for special increase in borrowing from 3 per cent to 5 per cent.

"In view of the unprecedented situation, the Centre has decided to accede to request and increase borrowing limits of states from 3 per cent of GSDP to 5 per cent for 2020-21 only. This will give states extra resources of Rs 4.28 lakh crore," she added.

(With inputs from PTI)&nbsp;

The Centre on Sunday agreed to raise the borrowing limit of states from 3 per cent of gross state domestic product (GSDP) to 5 per cent in 2020-21, to make available an extra of Rs 4.

The Centre on Sunday agreed to raise the borrowing limit of states from 3 per cent of gross state domestic product (GSDP) to 5 per cent in 2020-21, to make available an extra of Rs 4.28 lakh crore. Releasing the fifth and final tranche of the economic stimulus package, Finance Minister Nirmala Sitharaman said the Centre devolved Rs 46,038 crore of taxes in April to states even though actual revenue shows an unprecedented decline from Budget Estimates. Revenue deficit grants of Rs 12,390 crore were given to states on time in April and May despite the Centre's stressed resources, she said. Also, the advance release of the State Disaster Relief Fund (SDRF) of Rs 11,092 crore happened in first week of April, she said adding that a release of over Rs 4,113 crore from the health ministry for direct anti-COVID activities was also released. At the Centre's request, the Reserve Bank of India (RBI) has increased Ways and Means Advance limits of states by 60 per cent. Also, the number of days state can be in continuous overdraft has been increased from 14 days to 21 days and the number of days state can be in overdraft in a quarter has been increased from 32 to 50 days. State net borrowing ceiling for 2020-21 is Rs 6.41 lakh crore (3 per cent of gross state domestic product). States have so far borrowed only 14 per cent of the limit authorised. Eighty-six per cent of the authorised borrowing remains unutilised. Despite this, states have been asking for special increase in borrowing from 3 per cent to 5 per cent. "In view of the unprecedented situation, the Centre has decided to accede to request and increase borrowing limits of states from 3 per cent of GSDP to 5 per cent for 2020-21 only. This will give states extra resources of Rs 4.28 lakh crore," she added. (With inputs from PTI)

Centre raises borrowing limit of states from 3 pc of GSDP to 5 pc in FY21

India's finance minister Nirmala Sitharaman&nbsp;unveiled the next part of the economic <a href="https://www.wionews.com/business-economy/government-changes-definition-of-msmes-pm-modi-says-will-empower-entrepreneurs-298496">stimulus</a> package after announcing it on Tuesday.

<a href="https://www.wionews.com/india-news/governments-financial-package-big-relief-for-msmes-indian-taxpayers-298416">Also Read: Government's financial package: Big relief for MSMEs, Indian taxpayers</a>

Sitharaman said the second tranche of the economic stimulus package will benefit migrant workers, street vendors and small farmers.

Three crore marginal farmers have already availed Rs 4 lakh crore loans on concessional rates, India's finance minister said.

On employment of migrant workers, Sitharaman said that 14.62 crore man-days generated up to May 13 under MNREGA with Rs 10,000 crore has been spent.

Government backs universal right to minimum wages and regional disparity in minimum wages need to be bridged by national floor wage, the finance minister asserted.

Major announcements:

Government to spend Rs 3,500 crore on giving free food grain to 8 crore migrant workers who do not have either central or state PDS cards.

PDS ration cards to be made portable to allow migrant workers to use ration cards across states.

Rs 1,500 crore interest subvention for MUDRA-Shishu loans of up to Rs 50,000.

Government to launch affordable rental housing scheme for migrant workers.

50 lakh street vendors to be given Rs 5,000 crore.

Affordable housing scheme for middle income families with Rs 6 lakh to Rs 18 lakh annual income to be extended till March 2021.

Rs 30,000 crore additional emergency working capital fund to be provided through NABARD to small, marginal farmers. 
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India's finance minister Nirmala Sitharaman unveiled the next part of the economic stimulus package after announcing it on Tuesday. Also Read: Government's financial package: Big relief for MSMEs, Indian taxpayers Sitharaman said the second tranche of the economic stimulus package will benefit migrant workers, street vendors and small farmers.

India's finance minister Nirmala Sitharaman unveiled the next part of the economic stimulus package after announcing it on Tuesday. Also Read: Government's financial package: Big relief for MSMEs, Indian taxpayers Sitharaman said the second tranche of the economic stimulus package will benefit migrant workers, street vendors and small farmers. Three crore marginal farmers have already availed Rs 4 lakh crore loans on concessional rates, India's finance minister said. On employment of migrant workers, Sitharaman said that 14.62 crore man-days generated up to May 13 under MNREGA with Rs 10,000 crore has been spent. Government backs universal right to minimum wages and regional disparity in minimum wages need to be bridged by national floor wage, the finance minister asserted. Major announcements: Government to spend Rs 3,500 crore on giving free food grain to 8 crore migrant workers who do not have either central or state PDS cards. PDS ration cards to be made portable to allow migrant workers to use ration cards across states. Rs 1,500 crore interest subvention for MUDRA-Shishu loans of up to Rs 50,000. Government to launch affordable rental housing scheme for migrant workers. 50 lakh street vendors to be given Rs 5,000 crore. Affordable housing scheme for middle income families with Rs 6 lakh to Rs 18 lakh annual income to be extended till March 2021. Rs 30,000 crore additional emergency working capital fund to be provided through NABARD to small, marginal farmers.

Second tranche of economic stimulus will benefit migrant workers & small farmers: Nirmala Sitharaman

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