China gears up for a big week as markets await U.S. elections and stimulus details
The size of China’s highly anticipated stimulus plans will likely depend on the outcome of the U.S. presidential election, analysts said.
BEIJING — The size of China’s highly anticipated stimulus plans will likely depend on the outcome of the U.S. presidential election, analysts said.
Investors expect Beijing to announce details on fiscal support Friday. That’s when the standing committee of the National People’s Congress — China’s parliament — is due to wrap up a five-day meeting. The same gathering last year oversaw a rare increase in the fiscal deficit.
This year, the meeting’s timing means any details will be out just days after the U.S. has elected Republican nominee Donald Trump or Democratic rival Kamala Harris as the next president. Polls are set to close Tuesday night local time.
“The size of China’s fiscal stimulus package would be around 10~20% bigger under a Trump win than under the scenario of a Harris win,” Ting Lu, chief China economist at Nomura, said in a note last week.
He cautioned that most of China’s challenges are domestic, though there will be some impact from the U.S. election result.
Rating: 5