BEIJING: China’s top legislative body will hold a highly anticipated session in Beijing from Nov 4 to 8, as investors watch for any approval of fiscal stimulus to revive the slowing economy.
The once-every-two-month gathering of the Standing Committee of National People’s Congress will review a State Council report on financial works, the official Xinhua News Agency reported. The agenda was adopted at a meeting chaired by top legislator Zhao Leji on Friday (Oct 25), according to Xinhua.
The published agenda doesn’t specifically mention fiscal policies, although a previous decision to raise budget deficit mid-year last year was disclosed only after lawmakers approved it.
Voting will come on the last day of the meeting, with details to be released by state media afterward.
China’s economic expansion slowed in the third quarter despite tentative signs of improvement in September. Economy grew by 4.6% in the July-to-September period from a year prior, the slowest pace since March 2023. Chinese President Xi Jinping has called on officials to "make every effort” in the rest of the year to help the economy meet its annual growth target of around 5%.
Policymakers have unveiled measures including interest rate cuts and ramped up support for property and stock markets since late September, prompting a historic stock rally. But euphoria has faded as investors assess the strength of any move to increase government spending and borrowing.
Bloomberg News earlier reported that China is considering allowing local authorities to issue as much as 6 trillion yuan (US$853 billion) in bonds through 2027 mainly to refinance their off-balance-sheet debt, as part of a multi-pronged plan to boost the economy and help the country defuse financial risks. - Bloomberg
