Policies unveiled to inject new momentum

An employee (left) from a real estate sales department introduces a residential project to a potential homebuyer in Taiyuan, Shanxi province, on May 12, 2023. [Photo by WEI LIANG/CHINA NEWS SERVICE]

China released a series of policies and measures to promote sustained economic recovery recently, which will inject strong impetus into the world's second-largest economy to realize high-quality development.

The Communist Party of China Central Committee and the State Council jointly released a guideline on boosting the growth of the private economy, promising to improve its business environment, enhance policy support, and strengthen the legal guarantee for its development on July 19.

The guidance details 31 measures such as removing barriers in market access, fully implementing policies and mechanisms for fair competition, encouraging private companies to accelerate their digital transformation and invest more in research and development.

On July 24, the National Development and Reform Commission unveiled detailed measures to encourage private investment further as the country moves to revive the private economy.

The measures include encouraging private investment go into a selected number of industrial segments, improving financial assistance, and optimizing the management process of private investment projects.

On July 21, the National Development and Reform Commission released two documents to promote auto and electronics consumption

The documents detail a total of 22 measures, including easing restrictions on car purchases, reducing costs on the purchase and use of new energy vehicles and promoting the consumption of home appliances in rural areas, seeking to create a better environment for the consumption of automobile and electronic products.

On July 21, a guideline to promote the transformation and upgrading of villages inside megacities was approved at a State Council executive meeting.

The rebuilding of urban villages with various hidden hazards related to urban safety and social governance will be advanced on a prioritized basis in order to meet people's urgent needs.

Rebuilding of villages inside megacities with optimal conditions will be pushed forward, and will be better aligned with government-subsidized housing, so as to deliver concrete benefits to residents.

Local governments will assume major responsibilities, draft renewal plans in a well-calibrated manner, and raise funds through multiple channels so as to utilize land resources with high efficacy and meet the needs of various stakeholder.

Private investment will be encouraged and supported to participate in relevant projects, and new forms of businesses will be developed to ensure sound and sustained progress.

On July 10, China announced to extend two financial policies supporting the stable and healthy development of the real estate market to the end of 2024, involving a 16-step guideline rolled out last November.

The notice said the extended financial policies focus on two areas: supporting the reasonable deferral of property development loans and credit loans, and encouraging financial institutions to provide policy support for special loans that ensure the delivery of housing projects.