China Unveils $1.4 Trillion Debt Relief Plan To Alleviate Local Government Debt

2024-11-09 800

China announced a nearly $1 trillion five-year plan aimed at alleviating local government debt and driving economic growth. The program will allocate funds annually and issue special bonds over five years to reduce hidden debt. Analysts view this as a meaningful effort, though some investors had hoped for more immediate fiscal support. Chinese authorities have increased stimulus measures since late September, with President Xi Jinping advocating for stronger fiscal and monetary support to stabilize the real estate market.