The concrete measures taken by the government
The Council of State took action, deciding a series of measures to strengthen the bidirectional adjustment of supply and demand, including the increase in export tariffs on some steel products, the temporary exemption of tariffs on pig iron and steel scrap and the cancellation of export tax discounts for some steel products, to increase supply in the domestic market.
Targeted efforts will be made to advance structural adjustments and discourage energy-intensive projects. The country’s coal resources will be further used. Major companies will be encouraged to increase production and supply by ensuring the safety and capacity of wind, solar, hydro and nuclear power which will be increased to ensure energy supply during the summer peak.
The opening will be promoted to recalibrate the import, export and reserve reserves of raw materials, facilitate customs clearance and make the most of international and national markets and resources, to more effectively guarantee supply and keep prices stable. Market regulation will be strengthened. Trade associations are encouraged to play their role in strengthening industry self-discipline.
The crux of the anomalies in the futures market
An articulated plan, as can be seen, which also includes the financial part. “The regulation of futures and spot markets will be better coordinated and, where appropriate, targeted measures will be adopted to screen anomalous transactions and harmful speculations – specified Li Keqiang – irregularities such as the stipulation and execution of monopoly agreements, the diffusion of false information, price fraud and hoarding will be treated to the fullest extent permitted by law and brought to light ”.
Efforts will be made to maintain the stability of monetary policy and maintain the exchange rate of supporting the stability of the yuan, and to orient market expectations appropriately.