File photo of buildings in China used for demonstration purposes.
Beijing: China is weighing approving over 10 trillion yuan ($1.4 trillion) in additional borrowing in the coming years to shore up the economy and address local governments’ debt risks, Reuters reported, citing unnamed sources.
The fiscal stimulus may be approved at a meeting by China’s top legislative body to be held Nov. 4-8, according to yesterday's report.
The package includes 6 trillion yuan in debt to be raised over three years including 2024 to help local authorities resolve off-balance-sheet debt, as well as 4 trillion yuan worth of bonds to fund regional governments’ purchases of idle land and properties over the next five years, it said.
The stimulus could be bigger if Donald Trump wins his reelection bid next week because the former US president is expected to increase economic challenges for China, according to the report.
The session by China’s top legislative body comes as markets anticipate details of fiscal support for the economy to bolster Chinese President Xi Jinping’s most forceful economic stimulus plan since the pandemic.
