Governor of the People’s Bank of China, Pan Gongsheng, during a press conference on financial support for economic development, in Beijing, September 24, 2024. TINGSHU WANG/REUTERS Tuesday, October 8 in the morning, try to open a stock account in China was a challenge. As if suddenly, the whole country wanted to benefit from the boom recorded that day by the stock market, driven by the hope of new announcements of support for the economy. Unable to speak to an advisor at Galaxy Securities or China Securities brokers; at competing brokerages Guotai and Guangfa, all lines were saturated. Read also | Article reserved for our subscribers China announces a series of measures to try to revive its economy Add to your selections In recent weeks, state agencies have increased stimulus measures. The operation began at the end of September, in the run-up to the Chinese National Day holiday (Golden Week, from October 1 to 7), at a time when all indicators showed an economy in difficulty, activity industry is struggling with high youth unemployment. On September 26, the central bank announced a reduction in its key rates as well as a significant package intended to boost the stock markets. The State, for its part, lowered the amount of the contribution required for the purchase of apartments and mortgage rates. Most major cities have followed: Guangzhou and Shenzhen have removed limits on the number of apartments a family can buy, while Shanghai has reduced from three to one the number of years households must be able to prove that they have they paid their social security contributions before buying. Frenzy on the stock market Above all, the heart of power seems – finally – to have become aware of the extent of the difficulties the country is going through, while President Xi Jinping has until now shown himself reluctant to come to the aid of the real estate developers in difficulty and stock brokers. On September 26, a few days before the week off, the political bureau of the central committee of the Chinese Communist Party, which brings together the twenty-four highest members of the party-state, devoted its monthly meeting to the economy , something unusual at this time of year. “The fundamentals of the Chinese economy, its favorable conditions such as its ample market, its strong resilience and its great potential have not changed. But, at the same time, problems appeared,” he noted. Conclusion: “We must increase the intensity of fiscal adjustments and monetary policies against this cycle. » These words raised hope – and even a certain frenzy. Many individuals said to themselves that finally, there would be the opportunity to earn a little money after four years of falling property markets, which had taken a significant toll on their savings. In one week, Shanghai’s CSI 300 index jumped 20%. Even Blackrock and Goldman Sachs have raised their buy recommendations for Chinese stocks. You have 56.59% of this article left to read. The rest is reserved for subscribers.
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