China unveils £1.08 trillion stimulus package to tackle debt

China's new stimulus package addresses local government debt but fell short of many investors' expectations – here's why

China's President Xi Jinping
Xi Jinping wants to provide a “safe spiritual home” for China's population
(Image credit: © Lintao Zhang/Getty Images)

China has announced a ¥10trn (£1.08 trillion) stimulus package, but investors are “disappointed”, say Samuel Shen and Tom Westbrook on Reuters. Since September, Beijing has unveiled interest-rate cuts and an “unprecedented” ¥800 billion stock market rescue package.

The CSI 300 share index jumped 25% but has lost momentum in recent weeks as markets have awaited more details on stimulus plans. The new ¥10 trillion package addresses local government debt, but included “no measures to facilitate bank recapitalisation and/or boost consumption”, Nomura analysts tell the Financial Times. The emphasis is on “stabilisation rather than stimulus”.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.