Beijing Unveils Plan to Ease Hidden Local Debt but Holds off on Fiscal Stimulus

Key Takeaways

• China’s NPC Standing Committee last week approved a plan to relieve local governments from repaying RMB 12 trillion worth of hidden debt.
• The plan did not authorize new stimulus funding, despite market expectations that it would.
• Officials emphasized that there is still ample space for further fiscal and monetary policy in the future.