China's Economic Engine Gears Up for Revamp

China's economy is getting a much-needed boost with a series of bold policy moves. The country's central bank has slashed the mortgage rate for existing homeowners, while also reducing the amount of cash commercial banks must hold in reserve. This means banks will have more money to lend to real estate companies, helping to ease the financial pressure on the sector. The move comes as part of a broader effort to stimulate the economy. China is looking to get its economy back on track after a series of challenges, including a trade war with the US and a struggling manufacturing sector. The government is counting on a surge in consumer spending and investment to drive growth.The reduction in mortgage rates is expected to benefit millions of households, reducing their annual interest expenses by billions of yuan. This should give people more money in their pockets, encouraging them to spend and invest. But it's not just about helping homeowners. The policy changes are also aimed at getting the real estate sector back on its feet. By allowing banks to lend to companies that acquire land, the government hopes to revive the stock of vacant plots and ease the financial pressure on property developers.