China is preparing to give money directly to people.

Yesterday, September 25, 2024, the Chinese government announced that it would give subsidies to the poor, orphans and vulnerable people in society.

This activity shows the concern of officials and the government of this billion-people country.

Specifically, the value of the subsidy has not been disclosed. However, according to some sources, it will be about 800 yuan, equivalent to 3 million VND.

Note, this is just a rumor. Official information will be released by China before October 1, 2024, which is also the time of the country's 1-week national day holiday.

This is one of a series of policies to stimulate consumption, promote the labor market, and commit to creating jobs in China. As of early September 2024, the unemployment rate for 16-24 year olds was 18.8%.

In addition, the People's Bank of China (PBOC) has officially reduced the reserve requirement ratio of banks by another 0.5%. This means that the medium-term lending rate has dropped to 2% and the home loan interest rate has dropped by an average of 0.5%.

This has relieved the pressure on all workers and businesses in the country. It is expected that savings and lending interest rates will also be adjusted in the coming time.

The reason for this series of stimulus activities is that the Chinese economy in Q2/2024 was lower than expected. Especially the indicators measured in August were not up to par.