In an unprecedented move, China’s newly released consumption expansion plan has for the first time included measures aimed at stabilizing both the stock and real estate markets, marking a significant shift in policy direction, an official announced on Monday.
According to Li Chunlin, Deputy Director of the National Development and Reform Commission, the updated plan focuses on boosting consumer confidence and stabilizing market expectations. The policy outlines strategies to address both the demand and supply sides of the economy, a departure from previous consumption policies which were predominantly supply-driven.
Li emphasized that, while past policies were centered on creating demand through supply-side reforms, the latest measures place greater emphasis on increasing household incomes and reducing financial pressures on citizens. Key elements of this strategy include the promotion of reasonable wage growth and the scientific adjustment of minimum wages.
The plan also highlights initiatives to enhance property income, which include stabilizing the stock market, reinforcing strategic reserves, and introducing market stabilization mechanisms. A significant focus will be placed on removing barriers that prevent long-term funds—such as commercial insurance, the national social security fund, and pension insurance—from entering the stock market.
Furthermore, the consumption support plan outlines efforts to address the housing sector, with specific measures to curb the ongoing downturn in the real estate market and restore its stability, ensuring that the sector better meets the housing needs of consumers.
This comprehensive policy shift signals a broader strategy aimed at invigorating China’s economy by addressing key areas of concern, from wages to market stability, ultimately supporting consumer spending in a time of economic uncertainty.
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