(7 May 2025)
RESTRICTIONS SUMMARY:
ASSOCIATED PRESS
Beijing – 7 May 2025
1. Wide of the news conference
2. Mid of reporters
3. Mid of officials at the podium
4. SOUNDBITE (Mandarin) Pan Gongsheng, Governor of the People’s Bank of China:
“This time we are cutting the reserve requirement ratio by 0.5%, which will provide long-term liquidity of about 1 trillion yuan to the financial markets. By cutting the reserve requirement ratio, we will be able to optimize the structure of the liquidity provided by the central bank to the banking system, lower the liability costs of the banks and enhance the stability of the liability of the banks.”
5. Mid of reporters
6. Wide of reporter asking question
7. SOUNDBITE (Mandarin) Pan Gongsheng, Governor of the People’s Bank of China:
“The interest rate of housing provident fund loans for first-time home buyers loans for five years and above will drop from 2.85% to 2.6%, and the interest rates for other length of periods will also be adjusted in a synchronized way. We expect that every year it will save over 20 billion yuan on the interest of the housing provident fund loans for the residents. It will support the rigid housing demand of residential families and help end the downward trend and return to the stability of the real estate market.”
8. Close of reporters
9. Wide of the news conference
STORYLINE:
China has announced a barrage of measures meant to counter the blow to its economy from U.S. President Donald Trump’s trade war, as the two sides prepare for talks later this week.
Beijing’s central bank governor Pan Gongsheng and other top financial officials outlined plans Wedneday to cut interest rates and reduce bank reserve requirements to help free up more funding for lending.
They also said the government would increase the amount of money available for factory upgrades and other innovation and for elder care and other service businesses.
High tariffs imposed by Trump have begun to take a toll on China’s export-dependent economy, which was already under pressure from a prolonged downturn in the property sector.
Pan announced the cuts of China’s reverse repo rate, the rate on commercial banks’ deposits with the central bank, and the central bank’s lending rate to commercial banks.
The required reserve ratio, or portion of funds banks must hold in their reserves, was cut by 0.5%. Pan said that would free up 1 trillion yuan ($137.6 billion) in extra cash.
The central bank also reduced interest rates of housing loans.
The interest rate of housing provident fund loans for first-time home buyers loans for five years or more will drop from 2.85% to 2.6%, and the interest rates for other length of periods will also be adjusted in an synchronized way.
Financial markets have been reeling as the world’s two largest economies remained embroiled in a standoff over Trump’s tariffs of as high as 145% on imports of most Chinese products.
China has retaliated with tariff hikes of up to 125% on U.S. goods and stopped buying most American farm products.
The news of the extra boost for the economy and markets, plus the plans for China-U.S. trade talks, pushed share prices up more than 2% in Hong Kong and 0.5% in Shanghai early Wednesday. U.S. futures also advanced.
AP video shot by Borg Wong
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