Investors expect $369b of new China stimulus this weekend

Analysts predict that Beijing will sell more govt debt, try to boost consumption

China may deploy as much as two trillion yuan (S$369 billion) in fresh fiscal stimulus, as Beijing seeks to shore up the world's No. 2 economy and boost confidence, investors and analysts said.

The funds, potentially raised by selling more government bonds, could be announced as soon as Oct 12 by the country's finance minister in a highly anticipated briefing, according to a Bloomberg survey of 23 market participants.

Beyond the amount of any fiscal package, the target of support will indicate where the government looks to steer its economy after years of debt-fuelled expansion through investment, particularly in real estate and infrastructure.

"The stimulus should be multi-year and targeted to households and not restarting the real estate investment-led growth story," said Insead professor of economics Pushan Dutt. "It is the focus of the stimulus rather than the size that is important."

The weekend press conference, which the government said would introduce measures to strengthen fiscal policy, comes as investors assess how far the authorities plan to go with stimulus efforts that prompted a world-beating stock rally.

China has already cut interest rates and ramped up support for property and stock markets in a barrage of steps announced in late September. But investors have clamoured for fiscal interventions economists believe are crucial to lifting confidence.