From CNBC: 2024-11-07 21:56:03

China is expected to announce more stimulus after parliament’s meeting, aiming to boost economy amid stock rally. President Xi Jinping called for fiscal and monetary support in September. People’s Bank of China has cut interest rates, but major spending requires parliament approval. Analysts cautious on direct consumer support.

China’s parliament reviewing plan to increase local government debt, aiming to swap out hidden debt. Nomura estimates hidden debt at $7 to $8.4 trillion. Proposal could save local governments $300 billion in interest annually. Real estate slump and Covid-19 controls have strained local government revenues. IMF report shows local government debt at 22% of GDP in 2019.

Read more: China expected to announce highly anticipated fiscal stimulus package