China expected to announce highly anticipated fiscal stimulus package

China is expected to announce more economic stimulus after its parliament meeting ends. President Xi Jinping called for increased fiscal and monetary support to stop the real estate market slump. The approval for major increases in government debt and spending needs to come from the National People’s Congress. Analysts are cautious about direct support to consumers. The plan includes increasing the limit on local government debt issuance to address hidden debt. The country’s real estate slump and Covid-19 controls have strained local government finances. The IMF has reported that local Chinese government debt has outpaced revenue growth.