In China, which has recently announced economic stimulus packages one after another, finance minister Lan Fo’an may make a new support announcement at a press conference to be held tomorrow morning. Although expectations were high on this issue, the mountain gave birth to a mouse at the press conference held on Tuesday and the expected statements from the National Development and Reform Commission were not made. This situation also caused declines in Chinese stocks.
According to the latest research by Bloomberg from the US media; 23 market participants, including economists, strategists and fund managers, expect the planned funds to be obtained from the sale of more government bonds to be announced at tomorrow’s meeting.
“Even if it is not announced, it will come eventually”
A Bloomberg research predicts that a new fiscal package of 2 trillion yuan (approximately $283 billion) will be announced. However, survey participants stated that even if finance minister Lan Fo’an does not make the expected announcement tomorrow, they think that a new fiscal support package will come within the next 6 months anyway.
Experts say that China will increase public spending by selling more private bonds, while 4 survey participants think that the support package could reach up to 3 trillion yuan.
It is known that China has recently wanted to increase domestic consumption spending and thus aims to break the economic dependency based on exports. For this reason, the support package will be aimed especially at households.
Crypto and stocks may increase
A possible large support package announcement to be made at tomorrow’s meeting may also have a positive effect on China-based stocks and cryptocurrencies.
About 10 days ago, Reuters also announced that China was preparing a $285 billion support package, and Bitcoin rose after the news. Therefore, tomorrow’s announcement may initially benefit cryptocurrencies, especially during the weekend when stock markets are closed.
China was aiming to sell 9 trillion yuan worth of bonds in order to increase government spending this year alone.