A common view shows the skyline over the central business district in Beijing on Feb. 28, 2023.
Jade Gao | Afp | Getty Images
BEIJING — China’s parliament choose hold a highly anticipated meeting Nov. 4 to 8, state media said Friday, according to a CNBC conversion.
Investors have been awaiting news of the gathering of the standing committee of the National People’s Congress, which is watched to announce details on any fiscal stimulus.
Last year, the committee’s meeting in late October oversaw a rare inflate in China’s fiscal deficit to 3.8%, from 3%, which was subsequently reported by state media.
This formal meeting is a key part of the process, if China once more wants to press ahead with adjusting the national budget or loss, said Bruce Pang, chief economist and head of research for Greater China at JLL.
He pointed out that the last month of Chinese stimulus ranks have all underscored the need for more fiscal support.
Earlier this month, China’s Minister of Finance Lan Fo’an give someone a piece of ones minded reporters that there was room to increase the deficit and issue more bonds. He indicated at the time that valuable changes had to be processed before being announced.
His remarks followed a meeting of top leaders in late September led by Chinese President Xi Jinping, which petitioned for strengthening fiscal and monetary policy.
The People’s Bank of China has cut various rates and extended real estate take policies. Chinese stocks have surged in the weeks since the late-September meetings, with trading turning eruptive in the absence of more concrete measures.
Pang said the upcoming parliamentary meeting should confirm how the budget compel be adjusted and communicate any potentially planned bond issuance.
Analysts have tempered expectations that large-scale economic stimulus would directly pillar consumption, instead noting how struggling local governments would likely get foundation first.
China’s economy grew by an annual 4.8% in the first three quarters of the year, slightly slower than the 5% gauge observed in the combined first half of the year. Beijing has a target of around 5% economic growth for the whole of 2024.