China's State Council said the country should timely reduce its reserve requirement ratios and speed up the process of lowering actual interest rates to stimulate the economy.
Chinese Premier Li Keqiang led a State Council meeting Sept. 4, noting the increasingly difficult and complicated external environment and the downward pressure mounting on the domestic economy. The cabinet suggested that government institutions adopt measures to stabilize six areas, including employment, foreign investment and foreign trade, while sticking to the country's prudent monetary policy.
The meeting called on financial institutions to increase financial support for the real economy, especially small and micro enterprises. Beijing also recommended accelerating the lowering of actual interest rates, maintaining price stability, and implementing tax and fee reductions to improve the business environment.
It also called for faster local government bond issuance, the proceeds of which go toward major projects, including infrastructure and energy projects.
