7月31日国务院常务会议要点解读

Fiscal Policy - The government will significantly accelerate bond issuance in the second half of the year, with a peak expected in Q3, supporting infrastructure investment growth at around 8%[1] - A special long-term bond fund of 300 billion will be allocated for large-scale equipment upgrades and durable goods replacement, which is expected to have an immediate impact on investment and consumption[1] - There is a possibility of issuing an additional 1 trillion in long-term special bonds in H2 2023, along with special refinancing bonds to address local government hidden debt risks[1] Monetary Policy - Following the July interest rate cut, there is room for a reserve requirement ratio (RRR) cut in Q3 to support large-scale government bond issuance[1] - Banks may accelerate credit issuance in Q3, leveraging the central bank's interest rate cut to support the real economy[1] - A further reduction in policy interest rates is possible in Q4 to address low price levels and stabilize economic growth around 5.0%[1] Real Estate Policy - The policy to purchase existing residential properties for affordable housing will be advanced with greater intensity, focusing on resolving funding issues[2] - The financing coordination mechanism will enhance bank lending for real estate development, crucial for ensuring housing delivery and managing credit risks for developers[2] - There is an expectation for a continued downward adjustment of residential mortgage rates to improve market stability[2] Structural Reforms - Key structural reforms are anticipated to progress, particularly in improving the business environment for private enterprises[2] - The reform of the fiscal and tax system is urgent, with plans to shift consumption tax collection to local governments to enhance their incentive to promote consumption[2] - Efforts will be made to optimize land management systems to provide more development space for economically strong regions[2]