Li Daokui: China Or Launching Mini Stimulus Policy

Chinese leaders have recently expressed considerable concern about international affairs, anti-corruption issues and other issues.

Now, economic issues have a higher priority on the government's agenda.

The recent recession in the stock market sends a signal that investors lack confidence in China's economy, which is worrying.

According to a former adviser to the Chinese central bank, the current situation in China's economy may force the government to introduce additional stimulus measures.

Speaking at the annual economic Symposium of the Federal Reserve Bank of Kansas City on Friday, Li Daokui, an economist at Tsinghua University, said the concerns of Chinese policymakers were "economic and political reasons".

Li Daokui said that because of the recent sell-off in the stock market and the concern of the international community on China's economic problems, I think "China is very likely to launch the mini stimulus policy".

Li Daokui is a former adviser to the people's Bank of China.

He believes that the measures that the government may take is "acupuncture stimulation", which means that these measures aim at specific key points only.

Stimulating elements may include reducing long-term financing costs and implementing the previously announced reform of state-owned enterprises.

Li also said, "there is room for further decline in interest rates."

In the world's second largest economy, China has seen signs of further slowdown in economic growth, and its stock market has also been sell-off. In view of this, the people's Bank of China lowered interest rates earlier this week and injected liquidity into the banking system.

Li Daokui said that a sharp fall in the stock market in late June and early July can be seen as a healthy price adjustment, but the subsequent sharp decline in the stock market has made policy makers more afraid, because such a

The decline is not due to leverage, not because of excessive borrowing, nor because of investor inexperience, but because of the lack of confidence in the overall economy. "

Li Daokui believed that

There will be "relatively rapid" recovery, "but appropriate policy measures must be in place."

Jackson Hole was received warmly and thoughtfully by US government officials, Federal Reserve officials, global central bankers and economists.

Stanley Fisher, vice chairman of the Federal Reserve, asked Li Daokui a question. Fisher thought, "if China's economy is worse than what we think now, the Chinese community should be ready to deal with these serious problems." Stanley Fischer.

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In the near future, improving the quotation mechanism of the RMB exchange rate is a reasonable measure to comply with the trend of the international financial market, but the RMB exchange rate has no basis for sustained depreciation, and it can remain basically stable at a reasonable and balanced level.

We should continue to push forward the reform of the financial system and maintain the stable operation of the financial market.

We should speed up the construction of relevant systems and cultivate a pparent, long-term, stable and healthy capital market.

Li Keqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, chaired a special session of the State Council to study the impact and Countermeasures of the new changes in the international economic and financial situation on China's economy and make an important speech.

Zhang Gaoli, member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice premier of the State Council, attended the meeting.

Li Keqiang said that the recent international market turmoil has added new uncertainties to the world economic recovery. The impact of China's financial markets, imports and exports is also deepening, and the economic operation is under new pressure.

In the face of the complicated international environment and the appearance of deep contradictions at home, we insist on making steady progress and continuing to push forward structural reform, and gradually introduce a series of directional control measures such as lowering interest rates, reducing taxes and lowering fees and stabilizing the market. The effect is constantly emerging. The positive factors accumulated in structural adjustment have also enhanced the development of kinetic energy, and the economic operation has been maintained at a reasonable interval, and economic growth has taken the lead in the world.

Li Keqiang stressed that in the case of the weakening of traditional growth momentum, we should take more measures to reform and open up, increase the supply of public goods and public services, and enhance the driving force of economic development.

We should innovate the way of investment and financing, improve the investment ability of local and enterprises, promote the development of public facilities and other major projects by setting up special funds, replacing local stock debt, issuing corporate bonds, adjusting the capital ratio of fixed assets investment projects, etc., to support the development of the central and western regions and poverty-stricken areas and expand effective investment.

The new policy of promoting consumption and improving people's livelihood has been launched to promote the development of the express industry and release the consumption potential.

It supports the upgrading of quality and efficiency in the real economy, and accelerates depreciation in machinery, textile, light industry, automobile and other fields, and increases support for investment in traditional industries.

We should expand the application of green energy saving and low carbon products, and promote the development of "Internet plus" to expand more industries and form a new growth point.