China's Economic Confidence Faces Market Doubts

China expressed confidence in meeting its economic growth target but did not introduce new fiscal measures, disappointing investors seeking more support. Economic indicators have shown weakened growth momentum. The government plans significant fiscal spending and investment, yet more policy support may be necessary for sustained market optimism.

China remains optimistic about achieving its full-year growth target, yet this confidence hasn't translated into stronger fiscal measures, a move that disheartened investors. The announcement leaves some market players holding out for more substantial economic support as they navigate sluggish growth figures.

Chairman Zheng of the National Development and Reform Commission has revealed plans to inject 200 billion yuan for next year's budget and investments, emphasizing the need for robust macroeconomic policies. Still, the absence of immediate, detailed stimulus has muted initial market enthusiasm following China's recent holiday.

Despite unveiling the most aggressive monetary and property-related stimulus in years, analysts caution that reviving consumer and business confidence will take time. Predictions suggest additional fiscal measures of 1-3 trillion yuan for 2024 could offer stability. Nonetheless, some signals point to continued economic challenges, such as a decline in average wages across major cities.

(With inputs from agencies.)