China has approved a 6 trillion yuan ($839 billion) program to refinance local government debt, as Beijing rolls out more measures to support a slowing economy facing new risks from Donald’s re-election Trump.
The plan by the Standing Committee of the National People’s Congress was reported Friday by the Xinhua news agency, which provided few details as officials began briefing reporters in Beijing. This brings more clarity to many investors who have been waiting for a more complete picture of China’s promised fiscal measures to revive confidence.
China’s economy grew 4.6% in the third quarter, the slowest pace since March last year, casting doubt on Beijing’s ability to meet its annual expansion target of around 5%. This slowdown has prompted policymakers to adopt more favorable policies, including interest rate cuts and aid to the stock and housing markets.
The shift in late September sparked a historic stock market rally and caused global banks, including Goldman Sachs Group Inc., to revise upward their forecasts for an $18 trillion economy, although Trump’s election victory fueled calls for Beijing to step up policies aimed at boosting domestic demand to offset a potential decline in exports due to the president-elect’s tariff threats.
