China unveils $1.4tr local debt package but no direct stimulus

China has introduced a 10 trillion yuan debt package to ease local government financing strains and stabilize economic growth. The measures aim to repair municipal balance sheets in the long term, rather than injecting money directly into the economy. This move comes as China faces pressure from the re-election of Donald Trump as US president. The package includes raising local governments’ debt quota and using funds to repay hidden debts. However, some analysts believe more stimulus may be needed. The announcement may disappoint investors hoping for a larger stimulus package to support growth.