China's Economic Optimism: New Measures to Boost Growth

China remains confident in achieving its 2025 economic targets. Recent stimulus measures have pushed Chinese shares to two-year highs. However, internal and external pressures are notable. To support growth, China plans to issue significant funds from the next budget and accelerate fiscal spending to bolster the economy.

China's government has expressed strong confidence in attaining its economic targets for the year, with plans to accelerate some of the 2025 budget spending this year to bolster projects. The announcement came from Zheng Shanjie, chairman of the National Development and Reform Commission.

Since late September, a series of economic stimulus measures have fueled Chinese shares, reaching two-year highs, particularly after the markets reopened from the National Day holiday. Investors are now anticipating further fiscal policy support to sustain the market's positive sentiment.

Despite the stability in China's economy, Zheng highlighted the growing internal and external pressures it's facing. To counteract these, China will issue 100 billion yuan for local governments and another 100 billion yuan for key projects by the year's end. This is part of a broader strategy to boost macroeconomic policies and prevent an economic downturn.

(With inputs from agencies.)