China's Modest Economic Boost Falls Short of Bold Expectations

China's economic planning agency unveiled plans to boost the economy, focusing on investments and construction spending. However, the measures fell short of investor expectations for major initiatives, leading to a subdued market response. Challenges persist, including slowing consumer demand and a struggling property sector.

In a recent announcement, China's economic planning agency revealed a series of measures designed to invigorate the country's economy. Nevertheless, these plans fell short of the significant initiatives investors had anticipated, resulting in a tempered response from the market.

According to Zheng Shanjie, chairman of the National Development and Reform Commission, a frontloaded spend of 100 billion Yuan from the 2025 budget alongside an equal amount for construction projects has been planned. Despite these efforts, analysts noted the scale is far below what had been hoped for.

China's economy faces several challenges, including a downturn in the property market and reduced global demand. As part of recent efforts, China has introduced monetary measures, yet further strategies are needed to halt declining real estate prices and stimulate the capital market.

(With inputs from agencies.)