Premier Li Keqiang has hailed the success of the Chinese government’s efforts contain an ongoing rise in financing costs in the government work report released on 5 February.
“With regard to the problem of financing being difficult and expensive, we have implemented four successive reductions in the required reserve ratio, and adopted multiple measures in concert to ease tight financing for private enterprise and small and micro-enterprises,” said Li. “The trend of a rise in financing costs have achieved initial containment.”
Li further pointed out in the report that the Chinese central government had reduced taxes and administrative fees for companies and individuals by approximately 1.3 trillion yuan in 2018, as well as “promptly dealt with unusual fluctuations on the share and bond markets.”
“Faced with new circumstances and new changes, we firmly refrain from flood-style heavy stimulus, maintain the stability and continuity of macro-policy, and engage in active pre-adjustment and micro-adjustment.
“[We] firmly implement stable monetary policy, and guide the financial sector in support of the real economy.”