Premier Li Qiang said on Tuesday that he would hold two separate meetings to urge government ministries to improve policy coordination, and that China would present concrete plans for the policies it is considering. (Photo: Shutterstock)
3 min read Last updated: October 9, 2024 | 1:16 PM IST
China’s Ministry of Finance will announce details of the economic stimulus package at a highly anticipated press conference on Saturday, the Chinese government’s main intelligence agency said on Wednesday, hinting at stronger policies to revive growth.
The announcement came after a media briefing held by the country’s top economic planner on Tuesday.
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Investors were disappointed as authorities refrained from announcing major new measures to put the shaky economy back on more stable footing.
According to a notice from the State Council Press Office, Finance Minister Lan Foan will attend the press conference. The theme of the press conference was “Strengthening countercyclical adjustment of fiscal policy to promote quality economic development.”
Chinese stocks offset early losses following the announcement of a press conference scheduled for 10 a.m. (2 p.m. Japan time).
Since central banks and other regulators announced in late September the most aggressive financial stimulus since the coronavirus pandemic and measures to boost the real estate market, markets have been wondering how the government will proceed financially. We are waiting for details on whether the policy will be developed and how large it will be. , including interest rate cuts.
Premier Li Qiang said on Tuesday that he would hold two separate meetings to encourage government ministries to improve policy coordination, and that China would present concrete plans for the policies it is considering.
The world’s second-largest economy has been in a slump since the second quarter of this year, weighing down household spending and business sentiment amid a severe real estate recession, and falling short of the government’s 5% growth rate target. It is unlikely that this will be achieved.
To counter strong deflationary pressures and slowing growth momentum, China has released around 2 trillion yuan ($283.43 billion) worth of special bonds to support household consumption and help local governments tackle debt problems. Reuters reported last month that the company plans to issue a
Separately, Bloomberg News reported that China is also considering injecting up to 1 trillion yuan in capital into state-owned banks, primarily through the issuance of new special sovereign bonds, to increase their ability to support the struggling economy. It was reported that
Although there have been no official announcements in recent weeks about the size of the new fiscal support package, there has been speculation in financial markets that the stimulus package being prepared could be even larger than what has been reported in the media. There is widespread speculation that.
(Only the headline and photo in this report may have been reworked by Business Standard staff. The rest of the content is auto-generated from a syndicated feed.)
First published: October 9, 2024 | 1:16 PM IST
