Chinese stocks volatile after Beijing lays out fiscal plans

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Government plans to increase spending to boost world’s second-largest economy

Chinese stocks were volatile on Monday after Beijing sought to reassure investors over the weekend about its plan to increase spending to boost the world’s second-largest economy. The finance ministry on Saturday said it planned to recapitalise local governments and state banks and buy unsold property as part of its stimulus plans but held back from providing detailed figures.

“These changes are enough to maintain optimism leading up to the National People’s Congress session,” said Wei Li, head of multi asset investments of China at BNP Paribas. He said more decisions on stimulus were expected at the Communist party leaders’ meeting on the economy, the Central Economic Work Conference, in December.

 

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