BEIJING — According to a CNBC translation, state media announced that China’s parliament is scheduled to convene a highly anticipated meeting from November 4 to 8.
Investors have been eagerly awaiting news about the gathering of the standing committee of the National People’s Congress, which is expected to disclose information regarding any fiscal stimulus measures.
During last year’s meeting in late October, the committee oversaw a rare increase in China’s fiscal deficit from 3% to 3.8%, as reported by state media.
Bruce Pang, the chief economist and head of research for Greater China at JLL, emphasized the significance of this parliamentary meeting in the process of adjusting the national budget or deficit, especially in light of recent Chinese stimulus measures that have highlighted the need for additional fiscal support.
Earlier this month, China’s Minister of Finance, Lan Fo’an, mentioned to reporters that there was room to raise the deficit and release more bonds, indicating that substantial changes needed to be finalized before any official announcements.
Following a meeting of top leaders in late September led by Chinese President Xi Jinping, which emphasized the strengthening of fiscal and monetary policies, the People’s Bank of China has implemented rate cuts and extended support policies for the real estate sector. Chinese stocks have experienced a surge in the weeks following the late-September meetings, with trading becoming volatile due to the absence of more concrete measures.
Pang noted that the upcoming parliamentary meeting is expected to confirm the adjustments to the budget and potentially announce planned bond issuances.
Analysts have moderated expectations regarding large-scale fiscal stimulus directly boosting consumption, suggesting that struggling local governments would likely receive support first.
China’s economy expanded by 4.8% annually in the first three quarters of the year, slightly slower than the 5% growth rate observed in the first half of the year combined. Beijing has set a target of around 5% economic growth for the entirety of 2024.
