China is facing economic difficulties, with inflation falling and deflation gaining momentum. In September, the consumer price index (CPI) rose by only 0.4%, below the previous month. The producer price index (PPI) also fell more than expected, signaling a slowdown in the economy and the need for urgent fiscal measures.

Experts say China must act quickly to prevent long-term problems. Although the government is discussing possible stimulus, there are no concrete plans yet. Investors are eagerly awaiting decisive action from Beijing.

Chinese Finance Minister Lang Fo’an recently said the country could increase the deficit to support the economy. However, the details are still unclear. Economists estimate that between 2 trillion and 10 trillion yuan may be needed to stimulate the economy.

The People’s Bank of China (PBOC) has already cut interest rates and extended measures to support the real estate market. It has also launched a $71 billion program for institutional investors. But the stock market remains volatile, indicating the need for stronger fiscal measures. Investors are awaiting updates from Beijing in hopes of approval of a strong fiscal plan.