China's Lawmakers Convene to Approve Trillion-Yuan Stimulus, Swap Hidden Debts

Nov 4, 2024, 08:57 AM

On Monday, Chinese lawmakers convened for the 12th session of the 14th National People's Congress Standing Committee to approve a long-awaited fiscal stimulus package expected to run into trillions of yuan. The committee is reviewing a proposal by the State Council to raise local government debt ceilings, aiming to replace existing hidden debts with formal liabilities. Xinhua reported that the debt swap program is described as the 'strongest' effort to ease the financial burden impacting China's growth. Analysts from firms such as Goldman Sachs and HSBC anticipate that the measures will provide support for local governments and state lenders, helping to stabilize the economy through local government debt swaps and injections of capital into banks.