Chinese officials work on a big-scale debt plan — over 10 trillion yuan (1.4 trillion dollars) thats gonna roll out in next few years. The package might get even bigger if Donald Trump wins upcoming election in early november
The money split looks like this:
- 6 trillion for local-govt bonds
- 4 trillion to buy property and un-used land
Tommy Xie from OCBC Bank thinks its good news but points out that debt-swap details need more work. Meanwhile Gary Ng at Natixis says: this might be more like pain-relief than real fix
The stimulus size matches what market wanted‚ but package can be a painkiller rather than a booster for economy
Alvin Tan from RBC Markets notes that most cash will go to fix local debt and banks which dont give direct boost to economy. Louis Kumis at S&P Global thinks it helps confidence but wont fix housing market fast
Property stuff looks better since feb-24 when empty houses hit peak but needs more work. Lynn Song from ING sees this as good start — its what investors wanted to see but consumption support still needs work. Linda Lam at UMP thinks number looks good but says real-world results depend on how they use it