Sun Oct 13 14:20:00 UTC 2024: ## China Signals More Stimulus on the Horizon, But Details Remain Sparse

**BEIJING** – China’s Finance Minister Lan Fo’an has indicated that the government has room to increase debt and the deficit, fueling hopes for further economic stimulus. While details are still being discussed, the statement has calmed jittery investors who had been hoping for a major stimulus package.

During a press briefing on Saturday, Minister Lan emphasized that the space for deficit increase is “rather large”, and hinted that additional stimulus is in the pipeline. However, he did not specify the size or scope of potential measures, leaving investors uncertain about the direction and impact on the struggling economy.

The finance ministry outlined policy measures focused on addressing local government debt, stabilizing the real estate sector, and supporting employment. These include allowing local governments to use special bonds for land purchases and expanding affordable housing subsidies to include existing inventory.

Vice Minister of Finance Liao Min also mentioned plans to reduce real estate-related taxes, although specific details are yet to be released.

While analysts agree that these policy moves are in the right direction, they are waiting for more concrete details before evaluating their potential impact. Many eyes are now on the upcoming parliamentary meeting later this month, where further stimulus announcements are expected.

China’s economy has been facing headwinds in recent months, with retail sales and real estate struggling to recover. GDP growth has slowed, raising concerns that the country may miss its full-year target of 5%.

The announcement comes after the People’s Bank of China (PBOC) implemented a series of easing measures, including interest rate cuts and extended real estate support programs. The National Development and Reform Commission (NDRC) has also pledged to expedite the use of funds allocated for investment projects.

Despite these recent efforts, markets remain volatile. Investors are eagerly awaiting more concrete stimulus details and hoping for a significant boost to consumption and the real estate sector.

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