China struggles to revive economy; stimulus plans disappoint investors | Zen Soo / AP Business Writer

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HONG KONG—China’s economic planning agency outlined details of measures aimed at boosting the economy on Tuesday but refrained from major spending initiatives.

The piecemeal nature of the plans announced Tuesday appeared to disappoint investors who were hoping for bolder moves, and Shanghai’s benchmark gave up a 10 percent initial gain as markets reopened after a weeklong holiday to trade just 3 percent higher.

The NDRC’s chairman, Zheng Shanjie, said China was still on track to attain its full-year economic growth target of around 5 percent. But he acknowledged the economy faces difficulties and an increasingly “more complex and extreme” global environment. A modest package of 1.5 to 2 trillion yuan is more reasonable to expect in the near-term, she said, with another 2 to 3 trillion yuan in 2025.

 

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