US Bank Analyzes China’s Fiscal Deficit Amidst Monetary Policy Adjustments

Friday, 27 September 2024, 02:00

US Bank examines how China's fiscal deficit is being addressed through monetary policy and treasury bonds. Analysts suggest a strategy for lifting the budget deficit ratio. The article provides insights into President Xi Jinping's leadership and potential economic impacts on GDP.
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US Bank Analyzes China’s Fiscal Deficit Amidst Monetary Policy Adjustments

China's Fiscal Strategies Under President Xi Jinping

China is preparing to tackle its fiscal deficit, which analysts predict could reach around 3.1 trillion yuan this year. Strategies include selling over 1 trillion yuan of special treasury bonds to stimulate economic growth.

Monetary Policy Adjustments and Real Economic Impact

Bank of America anticipates a fiscal package that could boost demand and investment. Despite these measures, the effectiveness is questioned due to consumer caution and confidence issues in the economy.

  • Tianfeng Securities predicts at least 2 trillion yuan in additional treasury bonds.
  • Zhang Ming, a leading economist, emphasizes the need for fiscal expansion.

The public and private sectors' lack of confidence remains a critical challenge, affecting productivity and innovation.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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