On Saturday, China announced plans to support the real estate market, increase debt to strengthen the economy, boost bank capital to encourage lending, and provide subsidies to low-income individuals.
Finance Minister Lan Fuan stated that local governments will be allowed to use special bonds to purchase unsold residences, and the central government hinted at significantly increasing the fiscal deficit.
The fiscal stimulus package was announced after Beijing implemented various financial stimulus measures and is seen as essential for maintaining momentum in the stock market to prevent further slowdown of the world's second largest economy.
However, due to the lack of specific information on the amount of additional stimulus that authorities plan to spend, this announcement fell below expectations.
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