⚡️China Announced New Economic Stimulus, But Has Not Yet Detailed Its Plan
⏺China has announced new stimulus plans, promising to soon introduce a package of additional fiscal policy measures to support economic development. It is reported that the package includes a significant increase in public debt, measures to support consumers, local authorities, subsidies for the poor, recapitalization of banks, measures to stabilize real estate markets.
⏺However, during Saturday's press conference, specific details of the plan and, most importantly, numbers were not yet announced, which is likely to prolong nervousness in the markets in anticipation of a clearer policy roadmap of the Chinese authorities. China's legislature is expected to meet in the coming weeks to approve additional debt issuance.
⏺A wide range of economic data in recent months has fallen short of forecasts, raising fears among economists and investors that the government's goal of growing the economy by about 5% this year is in jeopardy and that a longer-term structural decline could occur. Data for September, due out next week, is expected to show a further decline, but officials said they were "fully confident" the 2024 target would be met.
⏺New fiscal stimulus was the subject of intense speculation in global financial markets after a September meeting of the Communist Party's Central Committee Politburo signaled a heightened sense of economic urgency.
