China expected to announce highly anticipated fiscal stimulus package

Published On Nov 7, 2024, 9:56 PM

China is expected to announce a significant fiscal stimulus package following its parliament's meeting. This comes after a series of earlier stimulus announcements that have already boosted stocks. Key economic authorities have pushed for fiscal and monetary support, including adjusting limits on local government debt, aiming to tackle the negative effects of a troubled real estate sector and high hidden government debt. Some analysts remain cautious about the exact nature and direct impact of the proposed support on consumers.

Read full article

Stock Forecasts

FXIView FXI chart on TradingView

Positive

The anticipated fiscal stimulus may lead to a burgeoning recovery in various sectors within China, particularly those related to construction and housing. This recovery could also boost Chinese equities, making it a propitious time for investors to consider investments tied to Chinese economic performance.

ASHRView ASHR chart on TradingView

Positive

The increased local government debt limits and potential economic support measures could help stabilize and positively affect the Chinese stock market as a whole, reflecting an upward trend for broad-based Chinese ETFs.

Related News

China is trying to fix its economy. Trump could derail those plans

Nov 7, 2024, 7:01 PM

Trump won the election on a platform of steep import taxes, including tariffs as high as 60% on China.

KWEB
FXI

China urges U.S. cooperation as Trump trade threat looms

Nov 7, 2024, 3:28 AM

China emphasized the need for greater cooperation with the U.S. a day after it became clear President-elect Donald Trump would be the next U.S. president.

FXI

Trump win and threat of more tariffs raises expectations for more China stimulus

Nov 6, 2024, 9:45 PM

Donald Trump's presidential win has raised the bar for Beijing's fiscal stimulus plans, expected Friday.

FXI
SPY