Chinese Premier Li Keqiang called on the nation’s financial system to make sacrifices to stabilize the economy.
Chinese officials asked financial institutions to forego up to $1.5 trillion yuan ($212 billion) of profits to support the economy. The comments were made during a State Council meeting, according to state television, which included calls for lower lending rates, service fee cuts and loan payment deferrals. Chinese commercial banks generated $2 trillion yuan ($282 billion) of net profit in 2019, as per official data.
According to a «Caixin» report citing an unnamed source close to the council, measures to be expected include borrowing cost cuts for new and existing loans.
In addition to an ongoing pandemic and U.S.-China trade war, the world’s second-largest economy is reportedly facing other serious humanitarian challenges including a second coronavirus wave that has reportedly led one Beijing district official to describe his area as being in «wartime emergency mode»; and a major flood that has affected 11 provinces.
