Beijing, PTI. After recovering from the Coronavirus infection, China has embarked on an exercise to revive its economy. China has announced a 0.20% reduction in reverse repo rate to make lending more attractive. With this, it has started manufacturing at full capacity to compensate for big Nakusan. Due to this virus, industrial activity in the world’s second largest economy had stagnated for almost two months.
Reverse repo is the rate at which the central bank buys securities from commercial banks. There is also an agreement to sell these securities in future.
China’s Ministry of Industry and Information Technology (MIIT) said on Monday that manufacturing had stopped due to COVID-19. However, now China’s manufacturing sector has started functioning. The ministry said that 98.6 percent of the country’s big industrial companies had started production again on Saturday.
MIIT Deputy Minister Shin Guobin told the media on Monday that 89.9 percent of employees of companies with an annual income of 20 million yuan have returned to work.
According to a report by China’s state-run news agency Xinhua, life is becoming normal in Hubei province, the epicenter of coronavirus. Work has resumed in more than 95 percent of the companies in the province on an average.
It is noteworthy that China, the world’s second-largest and Asia’s largest economy, was struggling with the Corona crisis for the last few months. More than 3,000 people died due to the disease in China. However, this communist-ruled country has now almost overcome the disease.