SINGAPORE – China’s top economic planning agency will hold a press briefing on Oct 8 to discuss a package of policies aimed at boosting economic growth, as investors look for more stimulus measures from President Xi Jinping’s government.
The briefing, which is scheduled to start at 10am, will include five senior officials from the National Development and Reform Commission (NDRC), including chairman Zheng Shanjie, according to a notice from the government on Oct 6.
Economists and traders are closely watching for additional policy measures after China’s top leaders signalled a desire to draw a line under the nation’s growth slowdown. Just before a week-long holiday in China, the government unleashed a slew of stimulus measures, including interest rate cuts, more liquidity to promote bank lending and a pledge of as much as US$340 billion (S$443.4 billion) to support the stock market.
Chinese shares have soared since late September as the policy support reinvigorated investor confidence, with the Hang Seng China Enterprises Index gaining more than 30 per cent in the past month. But concerns are growing over whether the rally can be sustained, given that China has seen several false dawns before, including a rally in February that completely unwound.
While the NDRC notice did not provide details about the briefing, expectations are rising among analysts for Beijing to expand public spending as part of its stimulus package. A prominent Chinese economist recently said that the country has room to ramp up fiscal support by issuing as much as 10 trillion yuan (S$1.86 trillion) in special debt. BLOOMBERG