Premier Li announced last Thursday a 6 trillion stimulus plan, 2 for tax cut and infrastructure spending, 4 for cost cut for SMEs (pension fee/housing fund reform/electricity/gas/water/rent). The details for the stimulus package is not announced and probably won't be available for general public. But the investment analyst community in C…
Premier Li announced last Thursday a 6 trillion stimulus plan, 2 for tax cut and infrastructure spending, 4 for cost cut for SMEs (pension fee/housing fund reform/electricity/gas/water/rent). The details for the stimulus package is not announced and probably won't be available for general public. But the investment analyst community in China have made some estimates:
- there will be around 500 billion tax cut and consumer coupons
- 1.2 trillion infrastructure spending (5G, Data Center, Cables, subway, roads)
- 300 billion spending on public education and medication
- the 4 trillion cost cut is not as well estimated because it is a fresh new announcement. But after the re-opening, some local governments directed the local SOE who owns ample commercial properties to cut the rent to 1/3 or 1/4 for small businesses.
Further expand/develop domestic demand is a long term task, but I think trying to re-distribute and invest in commoners, help them to get out of absolute poverty, enhance their sense of social security will in general encourage them to spend more. I do agree that relying on infrastructure spending won't be enough.
China is the biggest market now for Chilean cherries（88% of the total export). I think gradually people in China will consume more products all over the world.
Premier Li announced last Thursday a 6 trillion stimulus plan, 2 for tax cut and infrastructure spending, 4 for cost cut for SMEs (pension fee/housing fund reform/electricity/gas/water/rent). The details for the stimulus package is not announced and probably won't be available for general public. But the investment analyst community in China have made some estimates:
- there will be around 500 billion tax cut and consumer coupons
- 1.2 trillion infrastructure spending (5G, Data Center, Cables, subway, roads)
- 300 billion spending on public education and medication
- the 4 trillion cost cut is not as well estimated because it is a fresh new announcement. But after the re-opening, some local governments directed the local SOE who owns ample commercial properties to cut the rent to 1/3 or 1/4 for small businesses.
Further expand/develop domestic demand is a long term task, but I think trying to re-distribute and invest in commoners, help them to get out of absolute poverty, enhance their sense of social security will in general encourage them to spend more. I do agree that relying on infrastructure spending won't be enough.
China is the biggest market now for Chilean cherries（88% of the total export). I think gradually people in China will consume more products all over the world.