China state planner lays out further actions to boost economy but no new plans for major stimulus

Published On Oct 7, 2024, 11:25 PM

China's National Development and Reform Commission (NDRC) chair, Zheng Shanjie, announced steps to boost the economy, including accelerating the issuance of special purpose bonds to local governments and releasing an investment plan of 100 billion yuan. However, he did not unveil new major stimulus plans, disappointing investors and causing a decline in recent market rallies. Despite previous expectations for supportive measures following a lengthy economic downturn, the latest updates suggest caution over future growth and ongoing challenges such as sluggish domestic demand and a contracting property sector.

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The disappointing lack of major new stimulus from China, coupled with ongoing economic challenges, suggests a negative short-term outlook for related investment opportunities. Investors might want to consider sectors that could be affected by further economic slowdowns.

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