China vows to boost debt levels to revitalize economy amid investor uncertainty

Posted on October 14, 2024   |  

China announced on Saturday that it will "significantly increase" its debt to boost its struggling economy, but investors remain uncertain about the size of the stimulus package.

The finance minister will help local governments manage their debt, provide subsidies to low-income residents, support the property market, and strengthen state banks' capital.

These measures respond to investor calls as the world's 2nd-largest economy slows down and struggles with deflationary pressures.

Low consumer confidence persists amid a sharp decline in the property market, highlighting the need for these supportive actions.