🏛️China Considers Major Economic Stimulus Package Amid Growth Concerns
CHN.cash has retraced losses, climbing over 2% following news that Beijing may consider a substantial $1.4 trillion (10 trillion yuan) fiscal stimulus package. Additional expansion could be possible if Trump wins the U.S. presidency.
Key points:
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Open account Try demo Download mobile app Download mobile app- Beijing weighs massive $1.4 trillion (10 trillion yuan) fiscal stimulus plan to address economic challenges
- Package includes 6 trillion yuan for local debt resolution and 4 trillion yuan for land/property purchases
- Potential expansion of stimulus if Trump wins US presidency, with approval expected at November legislative meeting
China is preparing its most significant economic intervention since the pandemic, signaling a shift in Beijing's approach to managing its economic slowdown. The comprehensive package, reported by Reuters, represents more than 8% of China's GDP and aims to address multiple challenges facing the world's second-largest economy. The planned stimulus would be implemented over several years, with special attention given to resolving local government debt issues and stabilizing the troubled property sector.
The timing and scale of this initiative reflect growing concern among Chinese policymakers about the economy's trajectory. Vice-Minister of Finance Liao Min has emphasized the government's commitment to strengthening countercyclical adjustments, while economists anticipate the measures will help achieve China's annual growth target of around 5%. Recent data showing a 3.5% decline in industrial profits during the first three quarters of 2024 underscores the urgency of these interventions.
This strategic move comes amid broader international economic tensions, particularly with the United States, and demonstrates China's determination to maintain economic stability through significant fiscal intervention. The package's final approval is expected at the upcoming National People's Congress Standing Committee meeting in early November.
For CHN.cash, resistance is at 7677, while support holds near the recent lows at 7097. RSI is edging toward the oversold zone, showing bullish divergence, while MACD is tightening, signaling a potential bullish crossover ahead. Source: xStation
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