China mulls approving fresh fiscal package worth over ¥10 trillion next week

It is being reported that Beijing is looking to approve next week the issuance of over ¥10 trillion in extra debt over the next few years in order to revive economic conditions. And the package will be expected to be further bolstered if Trump wins the US election.

For some context, China’s top legislative body i.e. the National People’s Congress (NPC) is said to be meeting next week with the announcement set to follow on 8 November, according to the sources.

The package is believed to include ¥6 trillion raised via special sovereign bonds, in order to address local government debt risks. The remaining ¥4 trillion will be more related to the property sector. That being said, the sources are cautioning that the plans are not finalised yet and are still subject to changes.

Chinese equities have been struggling for momentum since the return from the Golden Week holiday. So, the news here is definitely a timely boost for morale at least. That will get investors buzzing again.

The antipodeans are getting a slight boost from this with AUD/USD up from 0.6560 earlier to 0.6580 on the day now.

This article was written by Justin Low at www.forexlive.com.