China’s government said it would create a new body to support the private sector, a move to shore up wavering confidence among entrepreneurs as a deep funk sets over the world’s second-largest economy, reports The Wall Street Journal. China’s National Development and Reform Commission, the country’s top economic planner, said Monday that it would set up a bureau to coordinate policies across different government bodies and help development of the private economy, the source of most of the new jobs and economic dynamism in the country.
The new bureau will be tasked with monitoring the country’s private economy and establishing channels for regular communication with private enterprises, Zhang Shixin, a senior official at the economic planner, told a news conference.
A cascade of policy packages since July underscored the urgency in Beijing’s efforts to boost China’s ailing private businesses and to contain systemic risks in the economy. In a bid to halt a prolonged slide in the stock market, regulators have halved stamp duty—the tax charged on each share trade—and restricted stake sales by major shareholders, prompting temporary rallies. They also relaxed restrictions on home buying and Chinese banks cut deposit rates to get the country’s reluctant consumers to unlock historically high rates of saving.