More stimulus plan details revealed

The Chinese government added details to its US$586 billion stimulus plan Wednesday, state media reported. The measures include new policies to encourage lending to infrastructure projects, small businesses, and car and home buyers. An extra credit volume of US$14.6 billion is to be provided to three policy banks to stimulate economic growth. In addition to using exchange rates, interest rates and bank reserve requirements to ensure liquidity within the banking system, China will also expand the issuance of treasury bonds and allow insurance companies to invest in infrastructure projects.