But with the US presidential race still tight and Chinese policymakers putting priority on the more immediate challenges facing the US$18 trillion economy, it may be months before detailed plans to support consumption come into focus. Policy-setting meetings in December or March are the next key dates to watch for clues about measures to prop up consumer spending power, which will be crucial to turning around sentiment.
Chinese lawmakers are gathering in the shadow of the US election to sign off on a fiscal package that’s set to run into the trillions of yuan yet is unlikely to put the market fully at ease.
The stakes have grown for this week’s conclave of the Standing Committee of the National People’s Congress, the executive body of the nation’s top legislature, as it’s expected to round out China’s largest effort to lift growth since the pandemic. The session in Beijing on Nov 4-8 will probably unlock additional resources meant to take the pressure off local governments and recapitalize major state lenders, according to banks such as Goldman Sachs Group and HSBC Holdings.
