On September 24, the People's Bank of China unveiled a major stimulus package, the largest since the pandemic, aimed at revitalizing the economy.

Key components of this stimulus included reducing short-term lending rates from 1.7% to 1.5%, injecting over $100 billion into equity markets, and lowering the reserve ratio requirement from 10% to 9.5%.

Additionally, the package aimed to decrease average mortgage interest rates by 0.50% and reduce the down payment for second homes from 25% to 15%.

On October 15, further measures were announced, including a $168 billion capital market injection and the potential issuance of £2 trillion in sovereign bonds to support local government debt.

These aggressive actions have already led to significant gains in stock indexes, with the Hang Seng and Shanghai Composite rising by 22% and 14% respectively in the third quarter.

Analysts anticipate that these measures will positively impact the manufacturing and real estate sectors, as well as the global economy, particularly in areas like automotives, AI, and renewable energy raw materials.

However, despite initial optimism, challenges remain, including a historic low business climate, stagnant stock market values, and difficulties in meeting a 5% GDP growth target for 2024.

Doubts have emerged regarding the sufficiency of these measures, prompting calls for more substantial fiscal stimulus to tackle ongoing issues such as youth unemployment and deflation in the property market.

Some analysts recommend diversifying policies to better support domestic production and reassessing investments in infrastructure and real estate due to high local debts.

These economic measures are expected to help mitigate tensions between China and the US/EU, potentially stimulating global trade.

China's recent economic actions are poised to have significant global implications, potentially overshadowing ongoing geopolitical concerns.

In recent decades, China has experienced impressive economic growth and technological advancements, which have bolstered its geopolitical stature.