The crisis escalates!China is under balance sheet pressure!How do we fix the economy?

Mondo Finance Updated on 2024-01-29

China is facingBalance sheetThe recession is an important reason for the lack of domestic demand. This article will**Balance sheetimpact on ChinaEconomyand propose ways to repair residents' balance sheets.

ResidentsBalance sheetIt refers to the income and expenditure of residents. Income includes wages, interest, and loan amounts, while expenses include consumption expenses, home purchase expenses, and loan repayment expenses, among others. When expenditures increase, liabilities increase, or net assets decrease, residents'Balance sheetwill be damaged, manifested as:Debt-to-asset ratioIncrease. China is currently facingBalance sheetThe shock means that household consumption has to be downgraded, resulting in insufficient domestic demand.

First of all, buying a house has led to an increase in residents' assets and liabilities, but the downward trend in housing prices has led to a slowdown or even a contraction in asset growth. China's booming property market over the past few years has led to an increase in household debt. FamousEconomyScientistsHuang QifanRepresents the real estate of Chinese urban residentsDebtIt accounts for 137 percent of household income9%, up from 90% in the United States. However, in recent years, the decline in the real estate market has led to a rapid decrease in residents' assets and an increase in the debt ratio, which has significantly suppressed consumer spending.

Secondly,a**fieldValuationto the residentsBalance sheetGenerate shocks. China for the past few yearsa**fieldPoor performance,Assets have shrunk. ** Leads residents to the futureof value-added expectations have weakened, they have lost confidence in consumption, and are more inclined to save than to consume.

In order to stimulate ChinaEconomyRecovery, the first task isExpand domestic demandand stimulate consumption. for the restoration of residentsBalance sheet, need to increase revenue, reduce debt.

1.Boost confidence: through ** and policy guidance, improve consumers andEntrepreneursconfidence in its futureEconomyThe development of the company remains positive. The unexpected issuance of favorable policies can stimulate consumption andInvestments

2.Cash and subsidy distribution: Direct cash and subsidy distribution to increase the number of residentsDisposable incometo promote consumption growth. This can be achieved through cost savings, reduced waste, and increased social assistance and subsidies.

3.Strengthen vocational training andStart a businessSupport: Improve the vocational skills and employability of residents to create more jobs and income**. In addition, supportStart a businessand the development of small and micro enterprises can also contribute to employment and income growth.

4.LowerDebtBurden: By reducing the debt pressure of residents, reducing the pressure of loan repayment, and improving the consumption power of residents. By lowering interest rates, extending loan terms, and optimizingDebtstructure and other measures to achieve it.

5.PushCapital marketsDevelopment: Increaseand othersInvestmentstool support, improveInvestmentsyields, increase the income of residents' assets, improveBalance sheet

In general, the restoration of residentsBalance sheetComprehensive governance and multifaceted efforts are needed to achieve ChinaEconomystability andSustainability。By boosting consumer confidence, increasing incomes, and reducing debt, domestic demand can be stimulated and China can be boostedEconomyFor the better.

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