Shenzhen, China — It’s been a rough few weeks for the Chinese government.
On Wednesday, China’s government-backed People’s Bank of China cut its benchmark interest rate by 0.25 percentage points to a record low of 6.2 percent, in a measure that is likely to spur more money out of the Chinese economy.
The Chinese government also announced it would introduce a measure it says will spur more investment in domestic and international businesses.
But the moves came at a time when Chinese companies have struggled to attract new investors and foreign companies are wary of investing in China.
The move also came just days after the World Bank said China is facing a shortage of foreign capital.
A Chinese man walks through a store during a business fair in Shanghai, China, July 21, 2017.
“It’s very hard to attract foreign investment in China because the government is very controlling and controlling the markets,” said Zhou Guoqiang, chief executive officer of Zhenhua Capital Group, a Beijing-based venture capital firm.
The move by the central bank comes as China’s financial system has been in turmoil for more than a year.
The central bank has slashed interest rates by as much as 20 percent in the past year, and it has cut the supply of credit by nearly a third since March.
The Chinese yuan has lost half its value against the dollar in 2017, while the stock market has lost more than 100 percent.
But in the weeks since the central government announced the rate cut, the stock and bond markets have recovered, and the Chinese currency has gained about $2.4 trillion.
Last month, China issued a $1.8 trillion bond backed by its foreign currency reserves.
The new $1 trillion measure was a response to the country’s growing trade deficit with the United States.
“We think the market reaction is positive, but there are some worries about the amount,” said Zhang Xiong, chief strategist at brokerage AMF.
“We expect more measures from the central authorities.”
China is facing its worst economic crisis since the financial crisis of 2008.
In July, China imposed a $5.8 billion ($7.3 billion) cap on the number of companies that can be registered with the People’s Administration of Foreign Exchange.
That meant foreign companies were barred from buying or selling assets in the country.
The restrictions have been lifted but remain in place.
China has seen a series of business-friendly measures in recent months, including an expansion of a trade zone to support exports of agricultural products, a crackdown on corruption, and new investment rules that aim to keep a lid on foreign ownership of state-owned enterprises.
But the crackdowns have caused a shortage in capital in the Chinese market, which accounts for around 40 percent of the countrys gross domestic product.
China also faces rising pressure from U.S. President Donald Trump and other global investors to take on more of the burden for its trade deficit.
Last week, China agreed to a $45 billion bailout from the International Monetary Fund and other lenders.
While the new measures by the People.s Bank of Beijing are not expected to boost economic growth in the short term, they are expected to help the Chinese central bank and government with its efforts to stimulate the economy.
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A new study by the University of Chicago found that Chinese firms have been growing faster than in other developed economies.
The study found that China’s total economy grew by 4.4 percent in 2017.
That was faster than the United Kingdom, Japan, France and Germany, which grew by 1.6 percent.
China’s growth rate has been slowing in recent years, as its economy struggles to recover from a severe downturn following a global financial crisis.