From CNBC: 2024-10-14 02:01:12

China’s Ministry of Finance prioritizes addressing local government debt issues over providing expected market stimulus. The ongoing press conference emphasized the government’s focus on resolving structural challenges rather than implementing macroeconomic solutions. CF40 states China may not need additional fiscal funding to reach the year’s 5% growth target.

Following recent policy announcements, investors await China’s parliament meeting later in the month. Analysts are divided on the necessary amount of fiscal support, with perspectives varying on the impact. M&G Investments fund manager emphasizes the importance of China’s policy direction, viewing it as a long-term investment opportunity. Capital Economics suggests at least 2.5 trillion yuan in additional funding is needed to sustain growth around 5% in the coming years.

Read more: China’s Ministry of Finance tackles debt problems before economic challenges