MNI BRIEF: China Issues Measures To Cut Cost For Real Economy

Authorities in China have issued a 22 point guide for cutting costs in the real economy, according to an NDRC notice on Thursday.

On Monetary policy, officials should use "multiple tools" to maintain reasonable and sufficient liquidity, whilst promoting stable and moderate reductions in loan interest rates. SMEs should receive support to reduce FX hedging costs, the notice said. The government will implement tax and fee reduction policies such as for R&D expenses, and appropriately reduce import tariffs on advanced technology and equipment, according to the notice.

The People’s Bank of China will consider cutting the reserve requirement ratio as soon as this quarter as it aims to support the accelerated issuance of government bonds while enhancing control over idle funds, policy advisors and economists recently told MNI. (SEE: MNI: Chances Rise PBOC Cuts RRR As Gov Debt Issuance Increases)