China's top policymakers discuss fiscal stimulus as US election looms

China's top policymakers are meeting to discuss a fiscal stimulus package amid concerns over the upcoming U.S. election. The outcome could influence China's economic strategy, especially after recent monetary measures aimed at boosting the struggling economy. The People's Bank of China recently implemented monetary stimulus to support the stock market and property sector. However, limitations exist, prompting a focus on fiscal measures to enhance local government spending and address financial stability. Expected announcements include a debt swap for local governments and recapitalization of state-owned banks, aimed at improving their lending capacity. Large-scale stimulus is unlikely, as the government prioritizes targeted spending on advanced manufacturing and social services.