The Fort Worth Press - China to raise local govt debt ceiling to boost struggling economy

USD -
AED 3.673005
AFN 68.386442
ALL 93.021933
AMD 389.349314
ANG 1.803734
AOA 913.000031
ARS 1002.721397
AUD 1.53358
AWG 1.8
AZN 1.702057
BAM 1.854577
BBD 2.020785
BDT 119.602116
BGN 1.858799
BHD 0.376916
BIF 2956.030306
BMD 1
BND 1.344124
BOB 6.930721
BRL 5.790848
BSD 1.000863
BTN 84.433613
BWP 13.672612
BYN 3.275301
BYR 19600
BZD 2.017372
CAD 1.39639
CDF 2864.999911
CHF 0.88374
CLF 0.035265
CLP 973.069559
CNY 7.241401
CNH 7.24719
COP 4396.59
CRC 508.251983
CUC 1
CUP 26.5
CVE 104.558213
CZK 24.0877
DJF 178.22092
DKK 7.087555
DOP 60.364405
DZD 133.750861
EGP 49.678296
ERN 15
ETB 124.782215
EUR 0.950275
FJD 2.269701
FKP 0.789317
GBP 0.791103
GEL 2.740301
GGP 0.789317
GHS 15.887842
GIP 0.789317
GMD 71.000247
GNF 8627.008472
GTQ 7.726299
GYD 209.391416
HKD 7.782965
HNL 25.291226
HRK 7.133259
HTG 131.472895
HUF 390.756993
IDR 15903.25
ILS 3.732285
IMP 0.789317
INR 84.493503
IQD 1311.043259
IRR 42092.505939
ISK 138.290123
JEP 0.789317
JMD 158.639851
JOD 0.709302
JPY 154.656495
KES 129.249619
KGS 86.506766
KHR 4038.536303
KMF 467.499881
KPW 899.999621
KRW 1398.125025
KWD 0.30759
KYD 0.834076
KZT 497.17423
LAK 21976.521459
LBP 89633.50686
LKR 291.187013
LRD 181.150969
LSL 18.152914
LTL 2.95274
LVL 0.60489
LYD 4.883414
MAD 9.998293
MDL 18.214834
MGA 4685.233124
MKD 58.48862
MMK 3247.960992
MNT 3397.999946
MOP 8.024142
MRU 39.785889
MUR 46.412517
MVR 15.460006
MWK 1735.461174
MXN 20.325297
MYR 4.464971
MZN 63.950307
NAD 18.152914
NGN 1680.590024
NIO 36.829479
NOK 11.03348
NPR 135.09167
NZD 1.703345
OMR 0.385001
PAB 1.000778
PEN 3.7981
PGK 4.029035
PHP 59.039501
PKR 278.226704
PLN 4.126669
PYG 7838.117183
QAR 3.649699
RON 4.729799
RSD 111.205995
RUB 101.000437
RWF 1380.157217
SAR 3.754257
SBD 8.355531
SCR 13.619994
SDG 601.497088
SEK 11.030315
SGD 1.343699
SHP 0.789317
SLE 22.575045
SLL 20969.504736
SOS 571.975839
SRD 35.43028
STD 20697.981008
SVC 8.757041
SYP 2512.529858
SZL 18.142596
THB 34.647019
TJS 10.658746
TMT 3.5
TND 3.159078
TOP 2.342102
TRY 34.465475
TTD 6.776157
TWD 32.567494
TZS 2652.359028
UAH 41.269214
UGX 3693.413492
UYU 42.784805
UZS 12854.406494
VES 46.433371
VND 25422.5
VUV 118.722009
WST 2.791591
XAF 622.001915
XAG 0.032192
XAU 0.000375
XCD 2.70255
XDR 0.761528
XOF 622.001915
XPF 113.087675
YER 249.924998
ZAR 18.116198
ZMK 9001.198706
ZMW 27.697968
ZWL 321.999592
  • RIO

    -0.0400

    62.39

    -0.06%

  • RBGPF

    59.6900

    59.69

    +100%

  • CMSC

    -0.0450

    24.52

    -0.18%

  • SCS

    -0.0200

    13.07

    -0.15%

  • CMSD

    -0.0836

    24.26

    -0.34%

  • NGG

    -0.3100

    63.27

    -0.49%

  • BCC

    -0.7700

    137.41

    -0.56%

  • BTI

    0.1500

    37.08

    +0.4%

  • RELX

    -0.1800

    45.11

    -0.4%

  • RYCEF

    -0.0800

    6.61

    -1.21%

  • JRI

    -0.0300

    13.23

    -0.23%

  • GSK

    -0.1100

    33.35

    -0.33%

  • BCE

    -0.3100

    27

    -1.15%

  • VOD

    0.0200

    8.94

    +0.22%

  • AZN

    -0.6000

    63.2

    -0.95%

  • BP

    -0.0100

    29.08

    -0.03%

China to raise local govt debt ceiling to boost struggling economy
China to raise local govt debt ceiling to boost struggling economy / Photo: © AFP

China to raise local govt debt ceiling to boost struggling economy

China said on Friday lawmakers had agreed to raise the local government debt ceiling by $840 billion, opening up new funds for its ailing economy as they eye the possibility of intensified trade tensions with US president-elect Donald Trump.

Text size:

Policymakers were keeping tabs on the US vote as they gathered in the Chinese capital this week for a meeting of the country's top lawmaking body.

The move would raise "the local government debt limit by six trillion yuan, which will be used to replace existing hidden debts, freeing up space for local governments to better develop the economy and protect people's livelihood," state broadcaster CCTV said.

Hidden debt is borrowing for which a government is liable, but which is not disclosed to its citizens or to other creditors, according to the International Monetary Fund.

"This six trillion yuan debt ceiling will be arranged over three years," finance minister Lan Fo'an told a press conference in Beijing.

It will be raised from 2024 to 2026 "to support local governments in replacing all kinds of hidden debt".

The move, proposed last month, would allow authorities to borrow more to fund the acquisition of unused land for development -- and is aimed at pulling the property market out of a prolonged slump.

Lawmakers also approved a new energy law to "promote... carbon neutrality" as Beijing moves ahead with its pledge to decarbonise its economy by 2060.

Trump promised during his campaign of punishing tariffs on Chinese goods that threaten further grief for the world's second-largest economy, which is already grappling with a prolonged housing crisis and sluggish consumption.

Observers say Beijing could seek to cushion that blow with a long-awaited "bazooka stimulus" for the economy -- though caution details might still take time.

- Taking stock of Trump -

This week's meeting, originally scheduled for late October, was likely pushed back to allow "policymakers a chance to address a possible Trump win", Lynn Song, chief economist for Greater China at ING, said.

"In our view, the odds for a larger policy support package will rise somewhat with a Trump victory," he added.

Trump's victory is "not necessarily bad for China as this may 'pressure' Beijing for a bigger stimulus", Qi Wang, CIO of UOB Kay Hian Wealth Management, said on X.

Beijing began to unveil a raft of measures in September aimed at boosting economic activity, including rate cuts and the easing of some home purchasing restrictions, but analysts have bemoaned the lack of detail so far.

Trump's re-election provides a need for greater urgency, experts say, though caution may still prevail as officials try to avoid piling on more government debt.

"Any potential stimulus size may be bigger, but so is the pressure," Gary Ng, senior economist at Natixis, said.

"The market may still not get the economic boosters it wants," he warned.

- 'Turning point' -

In Beijing on Friday, people acknowledged recent woes but expressed cautious optimism about the future of the economy.

Han Xi, a 32-year-old man from Shanxi province in northern China, began a new auditing job in Beijing this week after resigning from his previous company in April.

"I have sent out resumes during this period, but you can see it takes more than half a year to get a new job," Han told AFP, adding that "many companies are laying off employees right now".

"But from a macroeconomic perspective, I'm generally optimistic," Han added.

"Even though we're still in a downturn cycle, I think we are close to the turning point, though we haven't quite reached it yet."

Guo Hailong, a 35-year-old from the northern China's Inner Mongolia region, told AFP on Friday that his Beijing noodle shop was receiving noticeably fewer customers.

But he told AFP that he was confident in Chinese leaders' ability to effectively steer the economy through its current headwinds.

"We just do our business well, provide good service, produce good products and ensure quality," Guo said.

"We can't do anything if customers don't come to eat."

A.Maldonado--TFWP