Panoramic view of Beijing Central Business District skyline on February 28, 2023.
Gao Yu | AFP | Getty Images
BEIJING – China’s National People’s Congress will hold a highly anticipated session from November 4 to 8, State media said on Fridayaccording to a CNBC translation.
Investors have been awaiting news of a meeting of the Standing Committee of the National People’s Congress, where details of any fiscal stimulus measures are expected to be announced.
Last year, the committee, which met in late October, oversaw rare increase China’s fiscal deficit rose from 3% to 3.8%, which was subsequently reported by state media.
Bruce Pang, chief economist and head of research for Greater China at Jones Lang LaSalle, said that if China wants to move forward with adjusting the national budget or deficit again, this NPC meeting is a key part of the process.
He pointed out that China’s stimulus measures last month highlighted the need for more fiscal support.
Earlier this month, China’s Finance Minister Lan Fo’an told reporters there was room to increase the deficit and issue more bonds. He said at the time that major changes had to be processed before they could be announced.
His comments came after Chinese President Xi Jinping hosted a meeting of top leaders in late September that called for strengthening fiscal and monetary policies.
The People’s Bank of China has repeatedly cut interest rates and extended real estate support policies. Chinese stocks have soared in the weeks since the late September meeting, with trading shaky in the absence of more concrete measures.
Pang said the upcoming parliamentary session should confirm how the budget will be adjusted and communicate any possible planned bond issuance.
Analysts lowered expectations Large-scale fiscal stimulus will directly support consumption, rather than pointing out that struggling local governments may receive support first.
In the first three quarters of this year, China’s economy grew by 4.8% annually, slightly lower than the 5% comprehensive growth rate in the first half of the year. Beijing’s goal is to achieve economic growth of around 5% in 2024.
