China is considering $1.4 billion in fiscal stimulus: report - The Daily Hodl
China is reportedly considering a major stimulus package in a bid to breathe new life into its ailing economy.
According to Reuters, China, the world's second-largest economy, may approve a 10 trillion yuan (£1.4 trillion) fiscal stimulus package as early as next week.
China plans to raise new debt over the next few years by issuing special government bonds and local government bonds.
sources close to the matter said China wants to raise 6 trillion yuan ($840 billion) over the next three years to cancel local government debt.
Another 4 trillion yuan (US$560 billion) will be raised to support the country's real estate sector.
In June, dozens of banks in China were abruptly closed and absorbed by larger financial institutions after a sharp downturn in the real estate sector. The situation was exacerbated by weak risk management and rising local government debt.
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