Chinese Stimulus Package

How will it affect US markets?

$1.4 billion stimulus package

On December 9, 2024, China's top leaders announced a significant shift in economic policy, pledging more proactive fiscal measures and a moderately looser monetary approach for 2025.

While the full details of the stimulus package are yet to be revealed, economists anticipate that more specific measures will be outlined during the upcoming Central Economic Work Conference.

This can be seen as the second stage of an economic policy change. In September 2024, the People's Bank of China (PBOC) announced a comprehensive stimulus package, including monetary easing and fiscal support, to boost the country's economy. This announcement led to a substantial rally in Chinese stocks and affected US-listed Chinese companies as well.The stimulus package included:

1. Interest rate cuts

2. Increased liquidity for banks

3. Property market reforms

4. Stock market support measures

As a result of…