China announces special bonds for economic support, no significant economic stimulus measures.
China's economic policymakers outlined new measures to support the struggling economy, but the government refrained from implementing significant new economic stimulus measures.
Chairman Zheng Shanjie of the National Development and Reform Commission of China announced on Tuesday that special bonds would be issued to promote the growth of local governments. The chairman explained that a total of 1 trillion yuan in ultra-long-term special national bonds would be allocated to all local projects.
The central government plans to announce a 100 billion yuan investment plan for next year ahead of schedule by the end of this month, as added by a government senior official.
Following the Golden Week holiday that began on September 30, the Chinese market resumed trading simultaneously with briefings. Prior to the holiday, the authorities promised to strengthen support through fiscal and monetary policies, and announced stimulus measures to revitalize the real estate market.
Zheng acknowledged that there are still "many difficulties and problems" in achieving China's economic goals.
Due to policy authorities holding back on further economic stimulus measures, China's stock price index lost momentum after the holiday.
On Tuesday at the opening of trading, China's CSI300 index of high-quality stocks reached its highest level since July 2022, and the Shanghai Composite Index also hit its highest level since December 2021.
However, with policy authorities refraining from implementing further economic stimulus measures, these indexes narrowed their gains.
Chairman Zheng Shanjie of the National Development and Reform Commission of China announced on Tuesday that special bonds would be issued to promote the growth of local governments. The chairman explained that a total of 1 trillion yuan in ultra-long-term special national bonds would be allocated to all local projects.
The central government plans to announce a 100 billion yuan investment plan for next year ahead of schedule by the end of this month, as added by a government senior official.
Following the Golden Week holiday that began on September 30, the Chinese market resumed trading simultaneously with briefings. Prior to the holiday, the authorities promised to strengthen support through fiscal and monetary policies, and announced stimulus measures to revitalize the real estate market.
Zheng acknowledged that there are still "many difficulties and problems" in achieving China's economic goals.
Due to policy authorities holding back on further economic stimulus measures, China's stock price index lost momentum after the holiday.
On Tuesday at the opening of trading, China's CSI300 index of high-quality stocks reached its highest level since July 2022, and the Shanghai Composite Index also hit its highest level since December 2021.
However, with policy authorities refraining from implementing further economic stimulus measures, these indexes narrowed their gains.
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Magnificent7 : Isn't the Chinese government making a mistake in the order of magnitude?
First, we need to establish the scale of non-performing loans.
It should be from 1,000 trillion to 2,000 trillion.