China lawmakers to meet from Nov 4 to 8 as investors eye stimulus

BEIJING - China’s top legislative body will hold a highly anticipated session in Beijing from Nov 4 to 8, as investors watch for any

approval of fiscal stimulus

to revive the slowing economy.

The once-every-two-month gathering of the Standing Committee of the National People’s Congress will review a State Council report on financial works, the official Xinhua news agency reported. The agenda was adopted at a meeting chaired by top legislator Zhao Leji on Oct 25, according to Xinhua.

The published agenda does not specifically mention fiscal policies, although a previous decision to raise budget deficit mid-year in 2023 was disclosed only after lawmakers approved it.

Voting will come on the last day of the meeting, with details to be released by state media afterwards. 

China’s economic expansion slowed in the third quarter despite tentative signs of improvement in September.

Economy grew by 4.6 per cent in the July-to-September period

from a year prior, the slowest pace since March 2023. Chinese President Xi Jinping has called on officials to “make every effort” in the rest of the year to help the economy meet its annual growth target of around 5 per cent.

Policymakers have unveiled measures including interest rate cuts and ramped up support for property and stock markets since late September, prompting a historic stock rally. But euphoria has faded as investors assess the strength of any move to increase government spending and borrowing. 

Bloomberg News earlier reported that China is considering allowing the local authorities to issue as much as six trillion yuan (S$1.11 trillion) in bonds through 2027 mainly to refinance their off-balance-sheet debt, as part of a multi-pronged plan to boost the economy and help the country defuse financial risks. BLOOMBERG