0507 GMT - China could unveil a fiscal package of 9 trillion yuan at the National People's Congress Standing Committee meeting this week, Natixis economists Alicia Garcia Herrero and Jianwei Xu say. A large portion of that package could be allocated to swapping the debt of local government financing vehicles with official debt, the economists say. The magnitude of fiscal spending growth will likely be small compared to 2008, they say. "With a more developed economy and fewer investment opportunities, the government must balance diminishing returns and prudent debt management," they say. Beijing's priority should be to "prevent a hard landing" for the economy and cautiously expand the fiscal deficit rather than aggressively pursuing a high growth rate, they add. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
November 06, 2024 00:07 ET (05:07 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.