China Stimulus Plan: Central Bank People’s Bank of China Buys $111 Billion of 3-Month Outright Reverse Purchase Agreements in 2024 November to Improve Liquidity in Banking System
4th December 2024 | Hong Kong
China Stimulus Plan – China central bank People’s Bank of China (PBOC) has bought $111 billion of 3-month outright reverse purchase agreements in 2024 November to improve liquidity in the banking system. In November 2024, China has announced to decrease the residential property deed tax for 1st-time buyers to 1% for properties size of 140 sqm & below from 1st December 2024, and 1.5% property deed tax for properties size of above 140 sqm. The 2nd home property deed tax of 2% is only applicable for properties above 140 sqm, instead of the existing 3% property deed tax for size of above 90 sqm. Earlier in November 2024, China has announced $1.4 trillion (CNY 10 trillion) 5-year packages to support China local government debts, comprising of CNY 2 trillion per year additional debt limit for local governments for 3 years from 2024 to 2026, and CNY 800 million per year in special bonds over 5 years from 2024 to 2029. Earlier in November, China announced to reduce the capital requirements & lock-up period for investments into China A-shares for foreign strategic investors effective 2nd December 2024, for qualifying investors with proprietary assets of > $50 million or AUM > $300 million. The existing requirements are proprietary assets of > $100 million or AUM > $500 million. The shares lock-up period has also been reduced from 3 years to 1 year. In 2024 September, China announced new stimulus plan for the economy – 1) Decrease average interest rates for existing mortgages by 0.5%, 2) 15% minimum downpayment for residential homes, 3) $71 billion (CNY 500 billion) Swap Program to allow access to funding for funds, insurers & brokers to Buy stocks, 4) $42 billion (CNY 300 billion) in low interest rate loans to commercial banks by China central bank (PBOC) for share buybacks or acquisitions, 5) Decrease 7-Day Reverse Repo Rate by 0.2% to 1.5%, 6) Decrease Cash Reserve Requirement Ratios (RRR) by 0.5% freeing up $142 billion (CNY 1 trillion) of capital for lending.
“ China Stimulus Plan: Central Bank People’s Bank of China Buys $111 Billion of 3-Month Outright Reverse Purchase Agreements in 2024 November to Improve Liquidity in Banking System “
China Stimulus Plan: Decreased Residential Property Deed Tax for 1st-Time Buyers to 1% for Properties Size of 140 sqm & Below from 1st December 2024, 1.5% Property Deed Tax for Properties Size of Above 140 sqm, 2nd Home Property Deed Tax of 2% Only Applicable for Properties Above 140 sqm Instead of Existing 3% Property Deed Tax for Size of Above 90 sqm
15th November 2024 – China Stimulus Plan: China has announced to decrease the residential property deed tax for 1st-time buyers to 1% for properties size of 140 sqm & below from 1st December 2024, and 1.5% property deed tax for properties size of above 140 sqm. The 2nd home property deed tax of 2% is only applicable for properties above 140 sqm, instead of the existing 3% property deed tax for size of above 90 sqm. Earlier in November 2024, China has announced $1.4 trillion (CNY 10 trillion) 5-year packages to support China local government debts, comprising of CNY 2 trillion per year additional debt limit for local governments for 3 years from 2024 to 2026, and CNY 800 million per year in special bonds over 5 years from 2024 to 2029. Earlier in November, China announced to reduce the capital requirements & lock-up period for investments into China A-shares for foreign strategic investors effective 2nd December 2024, for qualifying investors with proprietary assets of > $50 million or AUM > $300 million. The existing requirements are proprietary assets of > $100 million or AUM > $500 million. The shares lock-up period has also been reduced from 3 years to 1 year. In 2024 September, China announced new stimulus plan for the economy – 1) Decrease average interest rates for existing mortgages by 0.5%, 2) 15% minimum downpayment for residential homes, 3) $71 billion (CNY 500 billion) Swap Program to allow access to funding for funds, insurers & brokers to Buy stocks, 4) $42 billion (CNY 300 billion) in low interest rate loans to commercial banks by China central bank (PBOC) for share buybacks or acquisitions, 5) Decrease 7-Day Reverse Repo Rate by 0.2% to 1.5%, 6) Decrease Cash Reserve Requirement Ratios (RRR) by 0.5% freeing up $142 billion (CNY 1 trillion) of capital for lending.
China Stimulus Plan: Announced $1.4 Trillion (CNY 10 Trillion) 5-Year Packages to Support China Local Government Debts, Comprising of CNY 2 Trillion Per Year Additional Debt Limit for Local Governments for 3 Years from 2024 to 2026, and CNY 800 Million Per Year in Special Bonds Over 5 Years from 2024 to 2029
9th November 2024 – China Stimulus Plan – China has announced $1.4 trillion (CNY 10 trillion) 5-year packages to support China local government debts, comprising of CNY 2 trillion per year additional debt limit for local governments for 3 years from 2024 to 2026, and CNY 800 million per year in special bonds over 5 years from 2024 to 2029. Earlier in November, China announced to reduce the capital requirements & lock-up period for investments into China A-shares for foreign strategic investors effective 2nd December 2024, for qualifying investors with proprietary assets of > $50 million or AUM > $300 million. The existing requirements are proprietary assets of > $100 million or AUM > $500 million. The shares lock-up period has also been reduced from 3 years to 1 year. In 2024 September, China announced new stimulus plan for the economy – 1) Decrease average interest rates for existing mortgages by 0.5%, 2) 15% minimum downpayment for residential homes, 3) $71 billion (CNY 500 billion) Swap Program to allow access to funding for funds, insurers & brokers to Buy stocks, 4) $42 billion (CNY 300 billion) in low interest rate loans to commercial banks by China central bank (PBOC) for share buybacks or acquisitions, 5) Decrease 7-Day Reverse Repo Rate by 0.2% to 1.5%, 6) Decrease Cash Reserve Requirement Ratios (RRR) by 0.5% freeing up $142 billion (CNY 1 trillion) of capital for lending.
China Reduced Capital Requirements & Lock-Up Period for Investments into China A-Shares for Foreign Strategic Investors Effective 2nd December 2024, Qualifying Investors with Proprietary Assets of > $50 Million or AUM > $300 Million, Existing Requirements are Proprietary Assets of > $100 Million or AUM > $500 Million, Shares Lock-Up Period Reduced from 3 Years to 1 Year
2nd November 2024 – China has announced to reduce the capital requirements & lock-up period for investments into China A-shares for foreign strategic investors effective 2nd December 2024, for qualifying investors with proprietary assets of > $50 million or AUM > $300 million. The existing requirements are proprietary assets of > $100 million or AUM > $500 million. The shares lock-up period has also been reduced from 3 years to 1 year. In 2024 September, China announced new stimulus plan for the economy – 1) Decrease average interest rates for existing mortgages by 0.5%, 2) 15% minimum downpayment for residential homes, 3) $71 billion (CNY 500 billion) Swap Program to allow access to funding for funds, insurers & brokers to Buy stocks, 4) $42 billion (CNY 300 billion) in low interest rate loans to commercial banks by China central bank (PBOC) for share buybacks or acquisitions, 5) Decrease 7-Day Reverse Repo Rate by 0.2% to 1.5%, 6) Decrease Cash Reserve Requirement Ratios (RRR) by 0.5% freeing up $142 billion (CNY 1 trillion) of capital for lending.
China Stimulus Plan: Decrease Average Interest Rates for Existing Mortgages by 0.5%, 15% Minimum Downpayment for Residential Homes, $71 Billion (CNY 500 Billion) Swap Program to Allow Access to Funding for Funds, Insurers & Brokers to Buy Stocks, $42 Billion (CNY 300 Billion) in Low Interest Rate Loans to Commercial Banks by China Central Bank (PBOC) for Share Buybacks or Acquisitions, Decrease 7-Day Reverse Repo Rate by 0.2% to 1.5%, Decrease Cash Reserve Requirement Ratios by 0.5% Freeing Up $142 Billion (CNY 1 Trillion) of Capital for Lending
27th September 2024 – China has announced new stimulus plan for the economy – 1) Decrease average interest rates for existing mortgages by 0.5%, 2) 15% minimum downpayment for residential homes, 3) $71 billion (CNY 500 billion) Swap Program to allow access to funding for funds, insurers & brokers to Buy stocks, 4) $42 billion (CNY 300 billion) in low interest rate loans to commercial banks by China central bank (PBOC) for share buybacks or acquisitions, 5) Decrease 7-Day Reverse Repo Rate by 0.2% to 1.5%, 6) Decrease Cash Reserve Requirement Ratios (RRR) by 0.5% freeing up $142 billion (CNY 1 trillion) of capital for lending.
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