China's finance minister to hold briefing, raising stimulus hopes

He is expected to launch moves to shore up growth, strengthen fiscal policy on Oct 12

- BLOOMBERG

BEIJING – China will hold a briefing on fiscal policy on Oct 12 as investors look for additional measures to stimulate the world's No. 2 economy.

The State Council Information Office announced the event on Oct 9. Finance Minister Lan Fo'an will introduce moves to strengthen fiscal policy to shore up growth and answer questions from reporters, according to the notice.

“Markets continue to swing between disappointment and hope for fresh, meaningful fiscal stimulus that would have a greater impact on business sentiment and employment,” said senior currency strategist Fiona Lim at Malayan Banking.

“That said, the sense of urgency at the top is clear and recent monetary easing and housing measures were also sizeable. As such, it is worthwhile to be cautiously optimistic at this stage.”

China's CSI 300 Index pared losses on the news. The country's 30-year government bond futures erased gains of as much as 0.8 per cent on speculation the nation may announce fiscal stimulus at the briefing. The offshore yuan extended a gain to trade 0.2 per cent stronger.