Published on November 11, 2024 at 5:53 p.m. / Modified on November 11, 2024 at 9:06 p.m.
The election of Donald Trump will ultimately not have pushed China to strengthen support measures for its economy. On Friday, the National People’s Congress presented a budget plan without surprises. The sum of the measures announced by Beijing amounts to a total of 10,000 billion yuan (1,221 billion francs), with the main objective of helping local governments support their debt. They allow local authorities to issue 6,000 billion yuan of new three-year bonds to which is added the use of special five-year bonds worth 4,000 billion yuan to pay off what Beijing describes as “hidden debt”. » estimated at 14,000 billion yuan.
At the end of September, the first stimulus measures from the Chinese authorities intended to support the real estate market and make the stock markets more liquid caused real euphoria on the Chinese stock markets. The CSI 300 – an index of the Shanghai and Shenzhen stock exchanges which brings together the 300 main market capitalizations in the country – soared by 32% in two weeks. Over the same period, from September 23 to October 7, the Hang Seng (Hong Kong stock market index) was up 26%. This surge was still followed by an equally abrupt, but much less significant, decline.
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