According to the government’s main information office, China’s finance ministry is set to announce fiscal stimulus plans to boost the economy during a highly anticipated news conference on Saturday. This move indicates a shift toward more aggressive policies to stimulate growth.
The announcement follows a media briefing by the country’s top economic planner on Tuesday, which disappointed investors as officials did not introduce significant new measures to stabilize the economy.
Finance Minister Lan Fo’an will be at the press conference, as the State Council Information Office noted. The theme will focus on “intensifying countercyclical adjustment of fiscal policy to promote high-quality economic development.”
In reaction to the announcement, Chinese stocks recovered some losses from earlier in the trading session. The news conference is scheduled for 10 a.m. (0200 GMT).
Markets are keenly awaiting details on the forthcoming fiscal policies, particularly after the central bank and other regulators revealed substantial monetary stimulus measures in late September—marking the most aggressive approach since the COVID-19 pandemic—and initiatives to revive the property market through interest rate cuts.
Premier Li Qiang conducted two meetings on Tuesday to emphasize the importance of policy coordination among government departments, stating that China will soon reveal specific plans for policies currently under consideration.
The world’s second-largest economy has shown signs of weakness since the second quarter of this year, negatively impacting household spending and business confidence amid a significant downturn in the property sector. Current trends suggest that China may not meet its growth target of around 5 per cent.
To address strong deflationary pressures and declining growth momentum, China plans to issue special bonds valued at approximately 2 trillion yuan (about $283.43 billion) to bolster household consumption and assist local governments with their debt challenges, as reported by Reuters last month. Additionally, Bloomberg News has indicated that the government is contemplating injecting up to 1 trillion yuan into its largest state banks to enhance their ability to support the struggling economy, primarily through new special sovereign bonds.
In recent weeks, financial markets have been buzzing with speculation that the forthcoming stimulus package could exceed earlier estimates reported in the media, although no official details regarding the size of the new fiscal support measures have been communicated.
