Research Article
Open access
Published on 3 January 2025
Download pdf
Lu,J. (2025). Policy Analysis and Economic Effects of Changes in Financial Asset Prices in China. Lecture Notes in Education Psychology and Public Media,79,54-59.
Export citation

Policy Analysis and Economic Effects of Changes in Financial Asset Prices in China

Junnuo Lu *,1,
  • 1 Guangdong University of Foreign Studies

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2753-7048/2025.LC19075

Abstract

China is in a period of high-quality development. Therefore, this paper studies the package of incremental policies issued by the People's Bank of China under the background of the great downward pressure of domestic economy and the complex international environment. This paper analyzes the policy goals and economic impact of the price fluctuation in financial assets in China. The release of this package of incremental policies is aimed at stabilizing economic growth, enhancing market confidence and creating jobs. Its key measures include lowering the required reserve ratio and interest rates, supporting the real estate market, and providing financing support for micro, small and medium-sized enterprises. On the positive side, the policy guarantees employment, stimulates consumption, and promotes the recovery of the real estate market. On the challenging side, this includes policy sustainability and insufficient consumer incentives. The package of incremental policies is particularly targeted and will have a significant impact on China's future economic development. However, its sustainability and effectiveness remain questionable, indicating the need for a gradual and orderly implementation.

Keywords

incremental package policy, financial asset prices, economic development

[1]. Chen, Y. (2024) The People's Bank of China announced! Lowering reserve requirement ratios, interest rates, reducing existing housing loan interest rates, and creating new monetary tools to support the development of the stock market. Retrieved from https://www.thepaper.cn/newsDetail_forward_28836435

[2]. Trading Econmics. (2024) China Full Year GDP Growth. Retrieved from https://tradingeconomics.com/china/full-year-gdp-growth

[3]. Beck, T. and Demirguc-Kunt, A. (2006) Small and medium sized enterprises: access to finance as a growth concern. Journal of Banking and Finance, 30, 2931–2943.

[4]. Berger, A. and Udell, G. (1998) The economics of small business finance: the roles of private equity and debt markets in the financial growth cycle. Journal of Banking and Finance, 22(6), 613–673.

[5]. Berger, A. and Udell, G. (2006). A more complete conceptual framework for SME finance. Journal of Banking and Finance, 30, 2945–2966.

[6]. Li, Q. (2024) Research on Financing Mode of Real Estate Industry in China—Taking Evergrande Debt Crisis as an Example. Finance, 14(1), 233-243

[7]. Wang, C. (2011) Study on China’s real estate financial innovation. Contemporary Economics, 2011(18), 102-103.

[8]. Xie, W. (2016). The analysis of financial risks of real estate in China. In 2nd International Symposium on Social Science 2016 (ISSS 2016). Atlantis Press, 237-241.

[9]. Qiu, X. and L, Z. (2022) Research on debt risk of real estate enterprises -- taking Evergrande Group debt crisis as an example. Financial Management Research (06), 29-34.

[10]. Pan, L. and Mishra, V. (2018) Stock market development and economic growth: Empirical evidence from China.Economic Modelling, 68, 661-673.

[11]. Guan, T. (2024). Review the background of the introduction and withdrawal of China's economic stimulus program in 2008. China Banking, (07), 35-38+6.

Cite this article

Lu,J. (2025). Policy Analysis and Economic Effects of Changes in Financial Asset Prices in China. Lecture Notes in Education Psychology and Public Media,79,54-59.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of ICGPSH 2024 Workshop: Industry 5 and Society 5 – A Study from The Global Politics and Socio-Humanity Perspective

Conference website: https://2024.icgpsh.org/
ISBN:978-1-83558-843-7(Print) / 978-1-83558-844-4(Online)
Conference date: 20 December 2024
Editor:Enrique Mallen, Rebecca Liu
Series: Lecture Notes in Education Psychology and Public Media
Volume number: Vol.79
ISSN:2753-7048(Print) / 2753-7056(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).