Intriguing Developments Ahead: China's Standing Committee of the National People's Congress to Convene on November 4

The Standing Committee of China's National People's Congress (NPC) is scheduled to convene early next month from November 4 to November 8, according to Xinhua News Agency. This meeting is eagerly anticipated by markets as a potential opportunity for announcing further economic stimulus measures.

As China's top legislative body, the NPC has the authority to approve fiscal stimulus measures that analysts deem crucial for reviving economic growth. Markets have been anxiously awaiting news on when this gathering will occur. Xinhua reported on Friday that the meeting’s agenda includes reviewing a range of bills and reports from various government agencies, without mentioning fiscal stimulus.

It remains uncertain whether China's State Council will submit a fiscal package to the NPC for approval. Following hints by the Chinese Finance Minister earlier this month that the central government might issue more state bonds, investors and economists expect the legislative body to approve a significant fiscal expansion plan worth billions of dollars by the year's end. However, there is considerable variability in forecasts regarding the extent of financial support, and there remains significant uncertainty over the specific measures and implementation plans.

Finance Minister Lan Fo'an indicated to reporters that there is “fairly substantial” room to increase spending. The minister also pledged to take the boldest steps in recent years to ease the debt burden on local governments, support the struggling property market, and recapitalize major banks.