China prepares huge money package while watching US election results
Chinese government is getting ready to spend big money to help its economy in coming years. The plan includes special bonds worth more than 10 trillion yuan‚ with timing linked to US election outcome
Chinese officials are working on a big-time financial plan that could pump more than 10-trln yuan into their economy. The Standing Committee meeting (scheduled for nov 4-8) will look at this mega-sized package
The main part includes 6-trln yuan spread across next few years; its gonna help local areas deal with their money problems. Another chunk - up to 4-trln yuan - would go towards fixing empty land issues and property stuff. The whole thing makes up about 8% of Chinas total money-making power
The timing of this meet-up isnt random - its happening right when Donald Trump and his opponent face off in US elections. Sources say Beijing might make the package even bigger if Trump wins (since he wants to put 60% tax on Chinese goods)
Here are some extra things they want to do:
* Put money into big state banks
* Help people buy new stuff with trade-in programs
* Fix up flood-control systems
Significant fiscal stimulus should buoy confidence and support economic growth
This new plan shows how Beijing wants to fix things up; but its still smaller than what they did back in 08 when they spent about 13% of their money-pile. The government already spent 1-trln yuan late last year - now theyre ready to do more since the economy needs an extra push
The whole deal isnt set in stone yet; its gonna depend on how things play out with the US vote and other stuff. But one things clear: Chinaʼs bosses dont want to wait around while their economy gets weaker
