Meanwhile, Beijing is closely monitoring the US presidential election to determine its next course of action. China's top legislative body is expected to announce fresh fiscal stimulus to support its economy, which has been struggling due to a prolonged economic downturn and a property crisis. Depending on the outcome of the US election, Beijing may have to adjust the size and details of the fiscal stimulus. If Republican candidate Donald Trump wins, Beijing is likely to roll out a bigger stimulus to buffer market volatility.
Key takeaways:
- Chinese Premier Li Qiang has boosted market expectations for more economic stimulus, stating that Beijing has ample space for fiscal and monetary policy.
- China's services activity and business confidence rose in October, with the Purchasing Managers' Index survey showing the fastest expansion in three months.
- Beijing is closely monitoring the US presidential election and may adjust its fiscal stimulus based on the outcome.
- China's legislative body is considering a plan to raise $1.4 trillion in extra debt over the next few years to fund part of an economic rescue package.