East Asia

Sum of Measures 1—5 (Total Package)

Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline CNY3,000,000,000,000 USD427,467,784,473
01A - Short-term lending info_outline CNY3,000,000,000,000 USD427,467,784,473

(i) CNY1.8 trillion for the expansion of re-lending and re-discounting facilities to support manufacturers of medical supplies and daily necessities, micro-, small- and medium-sized firms and the agricultural sector at low interest rates; (ii) In order to keep the liquidity stable, the People’s Bank of China (PBOC) conducts reverse repo operations with peak amounts (since February 3, 2020) of CNY900 billion (for 7-day maturity and CNY300 billion (for 14-day maturity). As of 24 June, PBOC conducted reverse repos in the amount of CNY180 billion (for 7-day maturity) and CNY110 billion (for 14-day maturity).

01B - Support policies for short-term lending info_outline

No amount/estimate: (i) Targeted reserve requirement ratio cuts by 50-100 bps for large- and medium-sized banks that meet inclusive financing criteria which benefit smaller firms, an additional 100 bps for eligible joint-stock banks, and 100 bps for small- and medium-sized banks in April and May to support SMEs; (ii) reduction of the 7-day and 14-day reverse repo rates by 30 and 10 basis points (bps), respectively; (iii) China will encourage its financial institutions to make interest concessions as appropriate to businesses to help keep economic fundamentals stable, and ensure that all fee-cutting measures are fully executed on the ground in an effort to ease corporate burdens.

01C - Forex operations info_outline

The exchange rate has been allowed to adjust flexibly. A ceiling on cross-border financing under the macroprudential assessment framework was raised by 25% for banks, non-banks and enterprises.

02 - Credit creation info_outline CNY2,913,500,000,000 USD415,142,463,354
02A - Financial sector lending/funding info_outline CNY1,400,000,000,000 USD199,484,966,088

(i) Liquidity injection into the banking system via medium-term lending facility totaling of CNY1 trillion since January of this year [update]; (ii) June 8, the PBOC, to start buying up to CNY400 billion (US$56.1 billion) of loans that local lenders have provided to small businesses, giving local banks the ability to increase small business lending by as much as CNY1 trillion yuan.

02B - Support policies for long-term lending info_outline CNY1,513,500,000,000 USD215,657,497,267

(i) Reduction of the 1-year medium-term lending facility (MLF) rate and targeted MLF rate by 30 and 20 bps, respectively (ii) Reduction of the interest on excess reserves from 72 to 35 bps; (iii) Flexibility in the implementation of the asset management reform; (iv) The PBOC and the China Banking and Insurance Regulatory Commission (CBIRC) allows the sale of coronavirus-relief bonds by financial institutions. China Development Bank issued the first batch of special bonds to fight the virus, equivalent of CNY13.5 billion at 1.65% for the purpose of emergency funding for affected firms; (v) No amount/estimate: tolerance for higher NPLs for loans by epidemic-hit sectors and SMEs and reduced NPL provision coverage requirements ; (iii) May 15, The PBOC lowered the RRR by 0.5 percentage points, for rural financial institutions and urban commercial banks operating solely within provincial-level administrative regions. This marks the second phase, of RRR reduction for these types of banks, releasing about RMB200 billion of long-term funds; (iv) June 17, The State Council encouraged financial institutions to provide CNY1.5 trillion (about $212 billion) worth of benefits to firms through cuts in interest rates and other methods this year. In order to support such firms, government at all levels have adopted policies like conducting differentiated supervision, increasing credit availability and mitigating loan risks [update]; (v) No amount/estimate: PBOC announced the Loan Prime Rate (LPR) on June 22, 2020 as follows: the one-year LPR is 3.85% and the above-five-year LPR is 4.65%. The rates are effective until the next release [update].

02C - Loan guarantees

No amount/estimate: Increased fiscal support for credit guarantees.

03 - Direct long-term lending info_outline CNY350,000,000,000 USD49,871,241,522
03A - Long-term lending info_outline CNY350,000,000,000 USD49,871,241,522

CNY350 billion for policy banks’ credit extension to micro- and small enterprises. expansion of policy banks’ credit extension line to private and micro- and small enterprises (RMB 350 billion).

03B - Forbearance

(i) No amount/estimate: The government has also taken multiple steps to limit tightening in financial conditions, including measured forbearance to provide financial relief to affected households, corporates, and regions facing repayment difficulties including delay of loan payments and other credit support measures for eligible SMEs and households and tolerance for higher NPLs for loans by epidemic-hit sectors and SMEs; (ii) No amount/estimate: June 5, PBOC introduced a policy allowing small and micro businesses to apply for deferring their inclusive loan repayments, maturing by end-2020 to March 31, 2021, with penalty payment exempted by providing 1% of the capital of SMEs’ loan applying for deferring repayments as the incentives for the local small and medium-sized commercial banks who lent those loans. SMEs who benefit from this measure should keep effective guarantee or alternative arrangements, use the loans for production and business purposes, and promise to maintain employment stable .

04 - Equity support info_outline CNY200,000,000,000 USD28,497,852,298

Policymakers are planning to allow local governments to replenish the capital of certain small and midsize banks to the tune of about CNY200 billion ($28.2 billion) in an effort to defuse bad-debt risks [update].

05 - Government support to income/revenue CNY8,322,400,000,000 USD1,185,852,629,834

(i) CNY1.60 trillion for local governments' infrastructure projects to boost investment amid slowing economic activity and trade headwinds with the United States funded by increase in the ceiling for special local government bonds of 1.3 percent of GDP. The main buyers of such bonds have been state-owned policy banks; (iv) By the end of April, local governments had given out more than CNY6.5 billion worth of consumer vouchers, essentially government subsidised coupons or discounts that can be spent at designated venues, according to data from 42 cities collated by the Chinese Academy of Social Sciences (CASS); (v) May 28, announced CNY2 trillion in increase in fiscal deficits and issuance of of special treasury bonds worth of CNY1 trillion of which CNY300 billion will be used by local governments for COVID-19 prevention and while the rest to support local governments’ operations. The increase of budget deficits and funds raised from the issuance of government bonds for COVID-19 control will all be channeled to primary-level governments. Companies, especially smaller firms, will truly benefit from these funds, and people who live on social security schemes, subsistence allowance, unemployment benefits, old-age support and those living in difficulties will be able to benefit. About CNY4 trillion covers payment relief for enterprises of their contributions to social security schemes, and taps into the balance of the unemployment insurance fund, interest concessions made by state-owned commercial banks, and price reductions in natural monopoly industries to lower enterprises’ operating costs. This money will be primarily used to support jobs, people’s basic living needs and businesses, and sustain household income. The government also said expenditure on investment projects will rise by 22.4 billion yuan for 2020; (vi) No amount/estimate: June 3, Logistics costs will be further reduced to improve the efficiency of logistics, accelerating the recovery of production and the return to normal life following the COVID-19 epidemic, according to a guideline from the National Development and Reform Commission and the Ministry of Transport [update]; (vii) June 23, estimated at CNY70O million: China Banking Regulatory Commission issued a "Notice on Hubei Province Insurance Legal Institutions and Branches Exempted from Payment of the 2020 Insurance Security Fund." with this exemption, insurance institutions will be able to provide better risk protection and financial support for the economic and social development of Hubei [update]; (viii) No amount/estimate: June 9, The Ministry of Human Resources and Social Security proposed to increase vocational skills training efforts to increase the number of free online training and open-line training to areas severely affected by the epidemic and to expand the scope of free courses [update]; (ix) No amount/estimate: June 17, Increased the subsidy standard for basic public health services per capita to 74 yuan, for the prevention and control of the new coronary pneumonia epidemic situation, to strengthen the grass-roots epidemic prevention and control [update]; (x) No amount/estimate: June 24, the State Council announced that government will work to further shorten the time required for starting a business and better regulate the charges on businesses from industry bodies and associations, in an effort to lessen corporate burdens and spur their vitality [update].

05A - Health
05B - Non-health
06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received CNY2,794,596,560 USD398,200,000
08A - Swaps info_outline
08B - International loans/grants CNY2,794,596,560 USD398,200,000
08B1 - Asian Development Bank CNY303,180,742 USD43,200,000

(i) February 7, USD1 million of additional financing for Strengthening Regional Health Cooperation in the Greater Mekong Subregion; (ii) February 20, USD18.6 million for the COVID-19 Emergency Response Project; (iii) March 30, USD20 million for the COVID-19 Emergency Energy Supply Project; (iv) April 15, USD3.6 million reallocated from the Chongqing Longxi River Basin Integrated Flood and Enviromental Risk Management Project to finance purchase of ambulances, medical equipment and personal protection equipment, linked to the broadened diaster risk responses capacity of the project components by extending from flood and pollution emergencies to include public health emergencies.

08B2 - Other CNY2,491,415,818 USD355,000,000

April 3, AIIB's USD355 million Emergency Assistance to PRC's Public Health Infrastructure Project .

09 - International Assistance Provided CNY14,246,687,636 USD2,030,000,000
09A - Swaps info_outline
09B - International loans/grants CNY14,246,687,636 USD2,030,000,000

(i) USD30 million to support World Health Organization's efforts in combating the global coronavirus pandemic; (ii) President Xi Jinping announced concrete measures to boost global fight against COVID-19 including providing international aid and making the country's COVID-19 vaccine a global public good when available. China will provide $2 billion over two years to help with COVID-19 response and with economic and social development in affected countries, especially developing countries; (iii) No amount/estimate: June 17, within the framework of the Forum on China-Africa Cooperation, PRC annonced that it will cancel the debt of relevant African countries in the form of interest-free government loans that are due to mature by the end of 2020 [update].

10 - No breakdown
11 - Other Economic Measures

(i) Restrictions on the investment quota of foreign institutional investors (QFII and RQFII) were removed; (ii) No amount/estimate: Additional financing support for corporates via increased bond issuance by corporates; (iii) Announced that it will make regulatory arrangements for the performance commitment requirements and adjustment of restructuring plans for listed companies that are indeed affected by the epidemic . encouraging lending to SMEs, including uncollateralized SME loans from local banks and raising the target for large banks’ lending growth to micro- and small enterprises from 30 percent to 40 percent.

12 - Non-Economic Measures

The government imposed strict containment measures, including the extension of the national Lunar New Year holiday (ending on Feb 2 extended from Jan 30), the lockdown of Hubei province, large-scale mobility restrictions at the national level, social distancing, and a 14-day quarantine period for returning migrant workers. The domestic transmission of the virus has slowed significantly, and mobility restrictions have been largely removed, while policy has tightened to contain the virus transmission of asymptomatic cases. Starting in mid-February, the government has gradually removed mobility and activity restrictions, prioritizing essential sectors, specific industries, regions, and population groups based on ongoing risk assessments. Most businesses and schools have reopened nationwide, but social distancing rules remain in place at the micro level and foreign entry remains restricted to contain imported cases. Localized movement restrictions were re-imposed in two cities in Jinlin province following reports of new infections. Testing and individualized health QR codes are used to gauge the path of the virus and contain outbreaks.