China approves economic stimulus package as it aims to boost ailing economy

China is aiming to revive its stumbling economy with a package of stimulus measures.

The central bank cut borrowing costs and allowed banks to lend more, in an aggressive policy shift that went further than analysts expected.

China faces severe economic problems, notably a sharp property market decline — a huge problem in a country where 70% of savings are in real estate — and slow growth.

The bank’s measures were “the most significant… since the early days of the pandemic,” one analyst told Reuters, but may not be enough to meet Beijing’s 5% growth targets. Still, “it is better late than never,” an economist said.