China Plans Stimulus Package for Economy

Investors are currently disappointed by the lack of specific figures regarding China's anticipated fiscal stimulus, which is expected to be revealed after the National People’s Congress Standing Committee meets later this month. UBS forecasts potential outcomes based on various package sizes, indicating a fiscal package of 1-2 trillion yuan could lead to a high single-digit upside for equities, while a more aggressive package could yield a significant boost. Similarly, market strategists suggest that China may delay larger stimulus measures until after the U.S. elections to achieve a more stable environment. Meanwhile, Japan's upcoming stimulus package is set to exceed last year's 13 trillion yen budget, as confirmed by government officials. China's focus will be on supporting local governments and state-owned banks rather than immediate consumer spending, with a possible total of 3 trillion yuan in new fiscal borrowing. Overall, while piecemeal stimulus measures are emerging, significant market volatility is anticipated until more concrete announcements are made.