China tries to revive its ailing economy with the largest round of stimulus since the pandemic

China’s central bank has unleashed its biggest round of stimulus since Covid in a bid to revive the ailing fortunes of the world’s second-largest economy.

The People’s Bank of China (PBOC) cut its main interest rate to 1.5 percent from 1.7 percent, eased mortgage rules and relaxed bank reserve requirements to free up more cash for new loans.

It also introduced initiatives worth more than £80 billion to boost the stock market by providing funds to financial institutions to buy shares and pay for buybacks.

Beijing is battling a sharp economic slowdown amid a severe slump in its property market.

This has left a number of property developers unable to pay their debts and a swathe of unwanted apartments, in a crisis that has weighed heavily on consumers, who have 70 per cent of their savings invested in real estate.

Yesterday’s stimulus sent China’s CSI 300 index up 4.3 percent, its best day since July 2020, and also boosted global stocks.

London’s FTSE 100 index closed up 0.3 percent, led by global mining stocks whose fortunes are closely tied to Beijing’s voracious appetite for copper and other metals.

Anglo American and Antofagasta rose more than 6 percent and Rio Tinto gained more than 4 percent, but experts said more help may be needed to turn around China’s fortunes.

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