China’s premier affirms need for policy speed as stimulus package sets markets ablaze

“[We must] expedite the roll-out and implementation of policies, with those relatively mature launched immediately,” said Li at an executive meeting of the State Council on Sunday. “All departments should not circumvent difficulties or pass the buck, but rather form strong synergy in their work.”

He also called on the government to strengthen coordination through “effective macroeconomic control” and develop “new incremental policies” in response to evolving circumstances.

Li’s comments serve as additional incentive for China’s vast state apparatus to mobilise and meet the annual gross domestic product growth target of “around 5 per cent” – a task made harder by weak domestic demand, distress in the property sector and strains on local government coffers.

To heed this call, the People’s Bank of China and the country’s biggest economic centres have lowered mortgage rates for existing home loans and loosened restrictions on real estate purchases.