BEIJING – China will hold a briefing on fiscal policy on Oct 12 as investors look for additional measures to stimulate the world’s No. 2 economy.
The State Council Information Office announced the event on Oct 9. Finance Minister Lan Fo’an will introduce moves to strengthen fiscal policy to shore up growth and answer questions from reporters, according to the notice.
“Markets continue to swing between disappointment and hope for fresh, meaningful fiscal stimulus that would have a greater impact on business sentiment and employment,” said senior currency strategist Fiona Lim at Malayan Banking. “That said, the sense of urgency at the top is clear and recent monetary easing and housing measures were also sizeable. As such, it is worthwhile to be cautiously optimistic at this stage.”
China’s CSI 300 Index pared losses on the news. The country’s 30-year government bond futures erased gains of as much as 0.8 per cent on speculation the nation may announce fiscal stimulus at the briefing. The offshore yuan extended a gain to trade 0.2 per cent stronger.
Stock investors have looked for greater fiscal spending to arrest a slowdown that threatens to put the country’s 2024 target of about 5 per cent growth out of reach.
Many expect an announcement by the Ministry of Finance, typically tasked with issuing bonds to support stimulus measures, after the National Development and Reform Commission (NDRC) disappointed on Oct 8 by announcing no major pro-growth steps after the long national holiday.
“This is a high-profile briefing as fiscal policy has been a focus of the market,” said Mr Bruce Pang, chief economist for Greater China at Jones Lang LaSalle.
“Only with the spending by the MOF can projects announced by the NDRC be rolled out and monetary easing have an impact on the real economy,” he
