In a recent announcement, Chinese leaders have committed to boosting fiscal support for the nation’s economy, which ranks as the second-largest globally. This decision follows closely on the heels of the central bank’s major monetary stimulus, the most substantial since the pandemic began.
The Politburo, headed by President Xi Jinping, has resolved to “issue and use” government bonds, seeking to enhance the role of government investment. This move comes amid rising concerns from analysts that China might fall short of its official economic growth target for this year.
Although state media reports have confirmed the commitment to increased fiscal measures, no specific figures were provided regarding the extent of the proposed stimulus or if it will go beyond the current plans for central and local governments’ long-term bond issuance.
State news agency Xinhua quoted officials emphasizing the need to “increase the intensity of countercyclical adjustment of fiscal and monetary policies.”
In response to these developments, China’s benchmark CSI 300 index saw a nearly 3 percent rise during Thursday afternoon trading.
This is an ongoing story.
