Will we get anything from China today?

From last week: China mulls approving fresh fiscal package worth over ¥10 trillion next week

The details of the leaked stimulus above were a little underwhelming to say the least. I mean, a ¥4 trillion split to special-purpose bonds just for idle land and property purchases? Not exactly all too convincing. The other ¥6 trillion split seems to be more towards addressing this. So, there’s not to say there is any direct injection to boost the economy.

That being said, there is one potential saving grace. The report above noted that the stimulus measures “will be enhanced” if Trump wins the US election. That is largely to prepare for tariffs and further trade conflict that will arise in the next few years.

So, it’s all about the wait now. Investors sought some comfort yesterday but Chinese stocks are tracking lower once again today. The nerves are starting to settle back in, even if this has been a largely positive week so far for domestic equities.

The China NPC will conclude their meeting today and markets will be looking for some announcement before or perhaps during the weekend. And even so, it will once again come down to the details to verify whether the recovery in sentiment leading up to the Golden Week can be sustained going into year-end.

This article was written by Justin Low at www.forexlive.com.